When a company uses the perpetual inventory system, ________.

A.

the Merchandise Inventory account is debited for purchases of goods that the company intends to resell to customers.

B.

purchases of Office Supplies and Equipment that will be used in the

daytoday

operations of the business are recorded as debits to Merchandise Inventory.

C.

the purchase of merchandise inventory on account is recorded as a debit to Accounts Payable and a credit to Merchandise Inventory.

D.

the Merchandise Inventory account is reported as an expense on the income statement.