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New Mexico Company makes cash sales of $100,000 and collects $6,000 of sales tax on these sales. At the end of the month, New Mexico

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New Mexico Company makes cash sales of $100,000 and collects $6,000 of sales tax on these sales. At the end of the month, New Mexico Company sends the collected sales tax to the state. The journal entry to record this payment to the state will: decrease assets and decrease stockholder's equity decrease assets and decrease liabilities. increase assets and increase stockholder's equity. increase assets and decrease liabilities

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