37 When a company uses the perpetual inventory system, O purchases of Office Supplies and Equipment that will be used in the day-to-day operations of the business are recorded as debits to Merchandise Inventory O the purchase of merchandise inventory on account is recorded as a debit to Accounts Payable and a credit to Merchandise Inventory O the Merchandise Inventory account is debited for purchases of goods that the company intends to resell to customers O the Merchandise Inventory account is reported as an expense on the income statement