Perpetual inventory system: basic entries Renato Company uses a perpetual inventory system. A partial chart of accounts is shown below, followed by a series of merchandising transactions. Indicate the accounts that should be debited and credited in recording each transaction. lgnore sales taxes.) 50 Sales Cash 2 Accounts Receivable 60 Cost of Goods Sold 5 Inventory 30 Accounts Payable x All other expense accounts Account(s) Account(s) DebitedCre 1,60 Credated 50,5 Transactions Example: Sold merchandise for cash Purchased merchandise on account A B Sold merchandise on account c Paid the supplier for the merchandise in transaction a D Collected cash from the customer in transaction b E The physical inventory at year-end disclosed a normal amount of inventory shrinkage