Final answer:
To record the sale of merchandise, two journal entries are made: one for the sale transaction and another for the cost of goods sold.
Step-by-step explanation:
When recording the sale of merchandise, typically two journal entries are made in accordance with the double-entry accounting system. The first journal entry would involve debiting the Accounts Receivable (or Cash) and crediting the Sales Revenue account to reflect the income generated from the sale. The second entry debits the Cost of Goods Sold (COGS) and credits Inventory, to represent the reduction in inventory as a result of the sale. This recognizes both the revenue aspect and the expense associated with the goods sold, thus providing an accurate picture of the business transaction.