Under a perpetual inventory system  accounting records continuously disclose the amount of inventory increases in inventory resulting from purchases are debited to Purchases a physical count is required to determine cost of merchandise on hand the purchases returns and allowances account is credited when goods are returned to vendors

When using the perpetual system for inventory, the journal entry to record a purchase of inventory would include a O debit to accounts payable credit to the inventory account debit to the inventory account ○ debit to the purchases account O credit to the purchases account

Describe the recording process for purchases of merchandise inventory using a Perpetual inventory system.