b) purchase returns are debited to Purchase Returns and Allowances.
c) freight costs are debited to Freight-Out.
d) purchases on account are debited to Inventory.
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Home » Business » Under a perpetual inventory system: a) purchases on account are debited to Purchases. b) purchase returns are debited to Purchase Returns and Allowances. c) freight costs are debited to Freight-Out. d) purchases on account are debited to Inventory.