In a perpetual inventory system, the journal entry to record the purchase of merchandise inventory on account includes a: a) Credit to Cash b) Debit to Purchases c) Credit to Accounts Receivable d) Debit to Merchandise Inventory 1) 2) In a perpetual inventory system, the journal entries to record the sale of inventory on account would include a: a) Credit to Accounts Payable b) Debit to Inventory c) Debit to Cost of Goods Sold d) Credit to Cash A company purchased inventory by paying cash. In which of the special journals would this transaction be recorded? a) Cash receipts b) Cash disbursements c) Purchases d) Sales 3) A company sold inventory to a customer on account. In which journal would this transaction be recorded? a) Cash receipts journal b) Purchases journal c) Sales Journal d) General journal 4) 5) The purpose of the account payable subsidiary ledger is: A) Identify individuals and companies who the company owes money B) Keep track of the various products being manufactured C) Monitor the balance in the various cash accounts at banks D) Identify the cash inflow expected from people who owe money to the company o The Purchase Discount Lost account is used when A) The gross method is used and the discount is not taken. B) The gross method is used and the discount is takern. C) The net method is used and the discount is not taken. D) The net method is used and the discount is taken