Week 9 Lab problem Required Transactions Basketball R Us had the following transactions 1) Create journal entries for the transaction below, then 2) post your journal entries to the T accounts and 3) complete the Income Statement Note: Basketballs R Us uses a perpetual inventory system Given: We buy Basketballs for $6, we sell basketballs for $10 1) We purchase 3,000 basketballs on account (hint: use Accounts Payable) 2) We sell 1,000 basketballs (cash received at time of sale) 3) Wages are $2000 (paid from cash) 4) Rent is $1500 (paid from cash) JE #1 JE #2 Account Name Inventory Accounts Payable Cash Sales Cost of Goods Sold Inventory Basketballs R Us - Journal Debit Credit 18,000 18,000 10,000 10,000 6,000 6,000