The Only Shirt Wholesalers spent $10,900 to purchase 1,000 shirts from a shirt manufacturer as inventory. Hip Hop Shirt Retailers purchased 1,000 shirts for $15,900 from The Only Shirt Wholesalers on March 11, 2019. Payment is due on April 11. Both companies use the perpetual inventory system.

Required

a) Prepare the journal entry for Hip Hop Shirt Retailers on March 11.

Date	Account Title and Explanation	Debit	Credit
2019
Mar 11		Answer
			Answer
	Purchased inventory

b) Prepare the journal entries for The Only Shirt Wholesalers on March 11. Record the revenue transaction first.

Date	Account Title and Explanation	Debit	Credit
2019
Mar 11		Answer
			Answer
	Sold inventory on account
Mar 11		Answer
			Answer
	Cost of goods sold for above sale