Final answer:
Every merchandise sale in a perpetual inventory system involves recording the sales entry for revenue and the cost of goods sold entry to reflect the inventory reduction.
Step-by-step explanation:
Every merchandise sale has two components, each of which require an entry in the perpetual inventory system. The first component is the sales entry where the cost of the merchandise sold is recorded as revenue. The second entry is the cost of goods sold (COGS) entry, which records the reduction in inventory and represents the cost associated with the item sold. This dual-entry approach ensures that the accounting records accurately reflect the reduction in inventory and the income from the sale.