Excise Taxes

Reagan Gas provides gas utilities to a wide area of eastern Illinois. During the month of May, it billed $21,400$ of its residential customers located in the town of Moline a total of $$2,500,000$ for electricity $($this is considered revenue$).$ In addition, Reagan is required to collect the following taxes:

a$.$ State Excise Tax: A tax of $$3\mathrm{.}00$ per customer plus $2\%$ of billing used to fund the Kentucky Energy Commission

b$.$ Federal Excise Tax: A tax of $$0\mathrm{.}50$ per customer plus $0\mathrm{.}1\%$ of billing used to fund the Federal Energy Commission

Required:

When required, round your answers to two decimal places.

Determine how much Reagan will bill these customers in total for the month of May.

$

Prepare the entry to record the billing of these amounts. If an amount box does not require an entry, leave it blank.

$\backslash$table$[[$Accounts Receivable$],[$Sales Revenue$],[$Excise Taxes Payable $($State$)],[$Taxes Payable $($Federal$)]]$

$($Record sale$)$

$3.$ Prepare the entry to record the collection of these amounts. If an amount box does not require an entry, leave it blank.

Accounts Receivable

$($Record collection of receivables$)$

$4.$ Prepare the entry to record the payment of the state excise taxes to the appropriate governmental unit. If an amount box does not require an entry, leave it blank.