Sydney, a customer, purchased $350 of merchandise from Illusions, Inc. Under the perpetual inventory system, Illusions, Inc. will record a:

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Under the perpetual inventory system, when merchandise is sold, the company records the sale by debiting Accounts Receivable (if the sale is on credit) or Cash (if the sale is for cash) for the amount of the sale, which in this case is $350. This reflects the increase in assets (either Cash or Accounts Receivable) resulting from the sale.

Sydney, a Customer, Purchased $350 of Merchandise from Illusions, Inc