The State levies a 4% sales tax on merchant sales volume whilethe local governme

The State levies a 4% sales tax on merchant sales volume whilethe local government levies a 2% tax on the same activity.Merchants are required to remit the full amount of all levied taxesto the State government within 15 days of month end and the Stateis required to remit collected taxes to local authorities within 30days of receipt. Assume the State and local authority had June 30year-ends and that sales volume for the months of June and Julywere $100000 and $200000 respectively. At June 30 eachgovernment would accrue the following related to salesactivity:State Local GovernmentTax Revenue Payable Tax Revenue$12000 $4000 $2000$12000 $6000 $6000$12000 $6000 $2000$4000 $2000 $2000