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

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Under the perpetual inventory system, all purchases of merchandise are debited to the Merchandise Inventory account, which is an asset account that reflects the total value of merchandise available for sale at any given time. As items are sold, the cost is transferred from the Merchandise Inventory account to the Cost of Goods Sold account. This method allows for continuous tracking of inventory levels and cost of goods sold.

Under the Perpetual Inventory System, All Purchases of Merchandise Are