During 2020, businesses in a county collect $10,000,000 in sales taxes from customers. These taxes are remitted to the county. Sales taxes are shared between the county, the towns located within the county, and the state, with 50% retained by the county for general use, 30% transmitted to the state, and 20% distributed to the towns. By year-end 2020, the county had distributed $1,900,000 of sales taxes due to the towns and $2,900,000 of sales taxes due to the state.

Identify the two county funds used to record the above activities.

Using the attached T-account template, prepare the journal entries to record the above activities in each fund. Clearly identify the fund in which the entries are made by name and by type of fund balance account(s).