Under the perpetual inventory method, when inventory is purchased, Merchandise Inventory

is debited and Cash or Accounts Payable is credited.
	is credited and Cash or Accounts Payable is debited.
	and Accounts Payable are credited and Cash is debited.
	and Accounts Payable are debited and Cash is credited.

2 - Unearned revenue is reported as a(n)

	current liability on the balance sheet.
	contra-asset account on the chart of accounts.
	owner's equity account on the work sheet.
	asset on the balance sheet.