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Journal entry to record purchase of merchandise and sale for a business that uses a perpetual...

Journal entry to record purchase of merchandise and sale for a business that uses a perpetual system.
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Journal Entry for Purchase of Merchandise:
Accounts title and explanations Debit $ Credit $
Merchandise Inventory Account Dr. XXX
        Accounts payable XXX
Note: Under Perpetual system, the purchase of inventory is directly debited to Inventory.
Journal entry for sales
Accounts receivable Account Dr. XXX
         Sales revenue Account XXX
Cost of Good sold Account Dr.
        Merchandise Inventory Account
Note: Under Perpetual system, the cost of goods sold is recorded as and when sales made.
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