The entry that would record the purchase of inventory on account in a perpetual inventory system would include a debit to Inventory account.
How are inventory purchases recorded?
When inventory is purchased, it is to be treated as an asset because it is owned by the company and will be used to make profit. This means that inventory purchases will be debited as assets are and will go to the inventory account.
The credited account would depend on how the inventory was purcahsed. If it was purcahsed with cash, the cash account is credited. If it was purchased on account, the accounts payables are credited. This is how a perpetual inventory system works.
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