Ruiz Company sells merchandise in a state that has a 5\% sales tax. On January 2, 1999, Ruiz sold goods with a sales price of \(\$ 80,000\) on credit. Sales taxes collected are recorded in a separate account. Assume that sales for the entire month were \(\$ 900,000\). On January 31, 1999, the company remitted the sales taxes collected to the state taxing agency.

a. Prepare the general journal entries to record the January 2 sales revenue. Also prepare the entry to show the remittance of the taxes on January 31.

b. Now assume that the merchandise sold on January 2 also is subject to federal excise taxes of \(12 \%\). The federal excise taxes collected are remitted to the proper agency on January 31. Show the entries on January 2 and January 31.