Purchases of merchandise increase the merchandise inventory account under the perpetual inventory system.

Name: Purchases of merchandise increase the merchandise inventory account under the perpetual inventory system.
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Question

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Under the perpetual inventory system, every purchase of merchandise is recorded as an increase in the merchandise inventory account. This helps in keeping a real-time track of the inventory levels and knowing when it's time to reorder.

Purchases of Merchandise Increase the Merchandise Inventory Account Under the Perpetual