The journal entry to record a purchase of inventory on credit under the perpetual system includes:

Name: The journal entry to record a purchase of inventory on credit under the perpetual system includes:
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Under the perpetual system, a purchase of inventory on credit would increase both the Inventory account and the Accounts Payable account. Therefore, we need to debit Merchandise Inventory (A) and credit Accounts Payable (C). The best choice is D, which includes both A and C.

The Journal Entry to Record a Purchase of Inventory on Credit