I'm going to give a fairly lengthy explanation in case others run across this same problem...
I am implementing Google in-app billing in my Android app and intend to offer "subscriptions" for the application users. I installed and coded Google's In-App Billing version 3 (IAB V3) and got everything working using Google's test account. Then I set up the product in the developer dashboard and changed the SKU in the code to point to my new subscription product. Rolled it out only to get "item not found" messages when you try to purchase the subscription. Searched the forums and saw lots of people saying "just, wait a few hours and it'll start working". Well I waited overnight and it still errored with "item not found". I then realized that IAB V3 does not support subscriptions - Doh!
I need to rewrite using IAB V2. In the SDK manager, I only see "Google Play Billing Library - 3". How do I install version 2 so I can get in-app billing subscriptions? I have deleted Google Play Billing Library version 3 in the SDK manager and refreshed. "Obsolete" is checked and it still does not offer version 2 for installation.