State of Denial has enacted a 6%, and City of Angels a 1%, sales tax. Businesses that collect sales taxes must transfer all collections to State within 30 days after the end of the month. State must transfer collected taxes to local governments within 90 days after the end of the month. City and State account for sales taxes in the general fund, and each has a December 31 fiscal year end. Sales subject to sales taxes in City were $5,000,000 in December and $3,000,000 in January. At year-end, City and State should recognize City State Revenues Payable Revenues Payable City Revenues $80,000 State Payable $480,000 Revenues $480,000 Payable $80,000 City Revenues $50,000 State Payable $300,000 Revenues $350,000 Payable $0 City Revenues $0 State Payable $350,000 Revenues $300,000 Payable $50,000 City Revenues $50,000 State Payable $350,000 Revenues $0 Payable $50,000