Grand Strand Power & Light provides utilities to a gulf coast community. On November 30 of the current year, the utility billed 1,500 residential customers a total of $118,500 for electricity. In addition, the company is required to collect state taxes of 1.5% and Federal excise taxes of 0.95%. Both of these taxes are used to fund the energy commission.
A)What total amount should be billed to customers for the month ending November 30?
B)Provide the journal entry to record the November billings.
C)Record the remittance of the taxes to the appropriate governmental units on December 31.
Correct Answer:
Verified
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