Great Shirt Wholesalers spent $$18,800$ to purchase $1,000$ shirts from a shirt manufacturer as inventory. Blackstar Shirt Retailers paid $$23,800$ for the $1,000$ shirts from Great Shirt Wholesalers on October $5,2018.$ Payment is due in one month. Both companies use the perpetual inventory system.

Do not enter dollar signs or commas in the input boxes.

Required

a$)$ Prepare the journal entry for Blackstar Shirt Retailers on October $5.$

Date Account Title and Explanation Debit Credit

$2018$

Oct $5$ Answer

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Purchased inventory

b$)$ Prepare the journal entries for Great Shirt Wholesalers on October $5.$ Record the revenue transaction first.

Date Account Title and Explanation Debit Credit

$2018$

Oct $5$ Answer

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Sold inventory on account

Oct $5$ Answer

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COGS for the sale