When a periodic inventory system is used, a sales transaction requires two journal entries, while under the perpetual system, a sales transaction requires only one journal entry.

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Under a periodic inventory system, the cost of goods sold is calculated at the end of the period, so a sales transaction requires only one journal entry to record the revenue. On the other hand, under a perpetual inventory system, the cost of goods sold is updated with each sale, so a sales transaction requires two journal entries - one to record the revenue and one to record the cost of goods sold.

When a Periodic Inventory System Is Used, a Sales Transaction