MANAGEMENT

Detailed explanation-1: -Journal Entries for Merchandise Purchaser (Perpetual Method) As inventory is purchased, the Merchandise account is debited. As inventory is sold, the Merchandise Inventory account is credited, and Cost of Goods Sold is debited for the cost of the inventory sold.

Detailed explanation-2: -Under the perpetual inventory method each time there is a movement journals are processed to record the change. Purchases are debited to inventory and sales are credited to inventory, with the debit going to the cost of goods sold account.

Detailed explanation-3: -Option (c)-Under the perpetual inventory system, the purchase account is not maintained. The inventory purchased is directly recorded under the merchandise inventory account.

Detailed explanation-4: -Correct answer: Option c) Debit Cost of Merchandise Sold; Credit Merchandise Inventory.