Under the perpetual inventory system, purchases of merchandise for sale are recorded in the Merchandise Inventory account.

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Under the perpetual inventory system, purchases of merchandise for sale are recorded in the Merchandise Inventory account, along with all other costs associated with acquiring or producing the inventory, such as freight, taxes, and other fees. This allows for real-time monitoring of inventory levels and cost of goods sold.

Under the Perpetual Inventory System, Purchases of Merchandise for Sale