Under the perpetual inventory system, the journal entries to record sales on account would be: Accounts Payable XX Merchandise Inventory XX Merchandise Inventory Cost of Goods Sold XX XX O Accounts Receivable XX XX Sales Sales Cost of Goods Sold XX XX Cost of Goods Sold Merchandise Inventory XX XX Merchandise Inventory Accounts Payable XX XX Accounts Receivable Sales XX XX Cost of Goods Sold XX Merchandise Inventory XX