u TurTHal debit balance? Sales Merchandise Inventory Interest Revenue Accounts Payable ossets. Expenses 3. MC.06-100 When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry? debit Merchandise Inventory; credit Purchases debit Merchandise Inventory; credit Cash Discounts debit Accounts Payable; credit Merchandise Inventory debit Merchandise Inventory; credit Accounts Payable 4. MC.06-114 Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $15,000. Emma prepaid the $750 shipping charge. Using the perpetual inventory method, which of the following entries will 1 o. make to record payment of the merchandise if Isabella Co. pays within the discount period? a. Accounts Payable-Emma Co., debit $15,750; Merchandise Inventory, debit $300; Cash, credit $1 it 15 750 t t15 450: ash, credit $15,450