The account distribution for sales of inventory on account is The account distribution for sales of inventory on account is: Sold and Sales Merchandise Inventory Receivable/customer and Checking. Debit Merchandise Inventory and Accounts Receivable; credit Cost of Goods Debit Accounts Receivable/customer and Cost of Goods Sold; credit Sales and Debit Accounts Payable/vendor and Cost of Goods Sold; credit Accounts None