Acompany sold merchandise with a cost of $238 for $440 on account. the seller uses the perpetual inventory system. the entry to record the cost of merchandise sold would include

In the perpetual inventory system, inventory and cost of goods sold are updated for each sale/purchase and return transaction.

A transaction of sale is noted through two journal entries in perpetual inventory system. The first journal entry is the sale value of inventory and the second journal entry is the cost of goods sold and reduces the inventory balance. 

The first entry would be:
Accounts Receivable 440                                 
                             Sales 440

The second entry would be:

Cost of Goods Sold238
                  Merchandise Inventory 238