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

debit Merchandise Inventory, credit Accounts Payable.

Explanation:

In the case when the merchandise is purchased on account, so the following journal entry is recorded

Merchandise inventory Dr

      To account payable

(Being merchandise inventory purchased on account)

Here merchandise inventory is debited as it increased the assets and credited the account payable as it also increased the liabilities