Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $78,600 with terms 1/10, n/30. The cost of the merchandise sold was $47,200. If an amount box does not require an entry, leave it blank Sale Accounts Receivable 78600 X Sales 78,600 X Cost Cost of Merchandise Sold 47,200 Merchandise Inventory 47,200 Chak My Wik (a) When the perpetual inventory system is used, two entries are recorded each time a sale is made. In the first entry, revenue on account is recorded by debiting Accounts Receivable and crediting Sales A second entry records the cost of the merchandise sold with a debit and merchandise inventory is credited.