When Purchases of Merchandise Are Made on Account with a Perpetual

Multiple Choice

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry?

A) debit Accounts Payable; credit Merchandise Inventory
B) debit Merchandise Inventory; credit Accounts Payable
C) debit Merchandise Inventory; credit Cash Discounts
D) debit Merchandise Inventory; credit Purchases