Buffet Company uses the periodic inventory method. On April 15, Buffet Company purchased merchandise inventory from Guacos Inc. with an invoice price of $70,000 and credit terms of 2/10, n/30. Buffet Company paid Guacos on April 25. How would Buffet Company record this transaction? 1) Debit Accounts Payable for $70,000, credit Purchase Discounts for $1,400, and credit Cash for $68,600. 2) Debit Accounts Payable for $70,000, credit Merchandise Inventory for $1,400, and credit Cash for $68,600. 3) Debit Accounts Payable for $68,600, debit Purchase Discounts for $1,400, and credit Cash for $70,000. 4) Debit Accounts Payable for $68,600 and credit Cash for $68,600. 5) Debit Accounts Payable for $70,000 and credit Cash for $70,000