Week 4 DQ2 What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system? The purchase of merchandise will be recorded as a debit for inventory and a credit to either cash or accounts payable depending on the method of payment for the inventory. The sale of merchandise will be recorded once the goods exchange hands. Two entries for each sale are logged into the ledger. First, an increase in accounts receivable or cash is realized so a debit is made and the second transaction is a debit of Cost of Goods Sold and credit of inventory. This decrement of inventory is to support an accurate on-hand inventory count. The periodic...