Try this..
declare @table table
(
EnteredDate datetime , Item varchar(55)
)
insert into @table( EnteredDate , Item ) values ( GETDATE(), 'Bags')
insert into @table( EnteredDate , Item ) values ( GETDATE(), 'Bags')
insert into @table( EnteredDate , Item ) values ( GETDATE()-1, 'Shoes');
with T as (select CONVERT(varchar(10), EnteredDate, 103) as EnteredDate ,item from @table)
select EnteredDate,item, COUNT(item) as [Count] from T group by EnteredDate, Item