Under the perpetual inventory system, all purchases of merchandise are debited to the account

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Under the perpetual inventory system, all purchases of merchandise are debited to the account Merchandise Inventory in order to keep track of the quantity and cost of inventory on hand. The account Cost of Merchandise Sold is used to record the cost of merchandise that has been sold, while Cost of Merchandise Available for Sale reflects the total cost of goods available for sale during a given period. The account Purchases is used in periodic inventory systems to record the cost of goods purchased during a specific period.

Under the Perpetual Inventory System, All Purchases of Merchandise Are