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Excise Taxes

Reagan Gas provides gas utilities to a wide area of eastern Illinois. During the month of May, it billed $22,000$ of its residential customers located in the town of Moline a total of $$2,790,000$ for electricity $($this is considered revenue$).$ In addition, Reagan is required to collect the following taxes:

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

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:

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When required, round your answers to two decimal places.

$1.$ Determine how much Reagan will bill these customers in total for the month of May.

$fill in the blank $9718$bd$05$b$03$a$032\_1$

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$2.$ Prepare the entry to record the billing of these amounts. If an amount box does not require an entry, leave it blank.

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$($Record sale$)$

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

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$($Record collection of receivables$)$

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$4.$ 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.

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$($Record payment$)$

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