Sales taxes should be recognized when the underlying event takes place. A state required $$large$$ merchants $($i$.$e$.,$ those with sales over a specified dollar amount$)$ to report and remit their sales taxes within $15$ days of the end of each month. It requires $$small$$ merchants to report and remit their taxes within $15$ days of the end of each quarter. In January $2015,$ large merchants remitted sales taxes of $$400$ million owing to sales of December $2014.$ In February $2015,$ they remitted $$280$ million of sales taxes owing to sales of January $2015.$ In January small merchants remitted sale taxes of $$150$ million owing to sales of the fourth quarter of $2014.1.)$ Prepare an appropriate journal entry to indicate the impact of the transactions on the state$$s fund financial statements for the year ending December $31,2014.2.)$ Suppose, instead, that $10$ percent of the taxes received by the state were collected on behalf of a city within the state. It is the policy of the state to remit the taxes to the city $30$ days after it receives them. Prepare an appropriate journal entry to indicate the impact of the transactions in the city$$s fund financial statements for the year ending December $31,2014.3.)$ Suppose instead that it was the policy of the state to remit the taxes to the city $90$ days after it receives them. How would your response the Part $(2)$ differ? Explain. Would your response be the same with respect to the city$$s government$-$wide statements?