A company uses the perpetual inventory method. Which of the following entries would be made to record a $1,200 purchase of merchandise Inventory on account? The accounting entry would be a $1,200 debit to Purchases and a $1,200 credit to Accounts payable. The accounting entry would be a $1,200 debit to Accounts payable and a $1,200 credit to Purchases. The accounting entry would be a $1,200 debit to Merchandise Inventory and a $1,200 credit to Accounts payable. The accounting entry would be a $1,200 debit to Accounts payable and a $1,200 credit to Merchandise Inventory