Final answer:
Journal entries for merchandise transactions vary between the seller and buyer in a perpetual inventory system. The seller records revenue and cost of goods sold, while the buyer records inventory and accounts payable. To determine merchandise and current account balances, transaction values must be inputted into provided tables and calculated.
Step-by-step explanation:
In a perpetual inventory system, both the seller and the buyer record their merchandise transactions differently. For the seller, when merchandise is sold, there are two journal entries to be made. The first journal entry by the seller debits Accounts Receivable and credits Sales Revenue for the selling price of the goods. The second entry debits Cost of Goods Sold and credits Inventory for the cost of the merchandise sold.
On the buyer's side, upon purchasing merchandise, an entry is made to debit Inventory and credit Accounts Payable for the purchase price. When the buyer pays for the merchandise, another entry is created to debit Accounts Payable and credit Cash.
To calculate the merchandise balance and current account balance, you will need to fill in the respective tables with the transaction values for goods, services, and income payments, and then perform the necessary calculations.