Prepare journal entries to record the transactions, assuming use of the periodic inventory system. ACCOUNTING CONNECTION Most companies call the first line of the income statement net sales. Other companies call it sales. Do you think these terms are equivalent and comparable? What would be the content of net sales? Why might a company use sales instead of net sales? Prepare journal entries to record the transactions, assuming use of the periodic inventory system. ACCOUNTING CONNECTION Most companies call the first line of the income statement net sales. Other companies call it sales. Do you think these terms are equivalent and comparable? What would be the content of net sales? Why might a company use sales instead of net sales