Wholesalers buy large quantities of merchandise and then resell to many different retailers Select one: True False Under a perpetual inventory system merchandise is purchased on account. The correct journal entry for this purchase will be a Select one: O a. debit to Merchandise Inventory and a credit to Accounts Payable O b. debit to Purchases and a credit to a Cash O c. debit to purchases Returns and a credit to Cost of Goods Sold O d. debit to Merchandise Inventory and a credit to Cash Sales less cost of goods sold is closing stock. Select one: : True False The cost of goods sold is determined by adding the cost of purchases to the beginning merchandise inventory and subtracting the ending merchandise inventory. Select one: True O False