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Brothers Company sold merchandise for $ 3 , 1 0 0 . The event is subject to a state sales tax of 9 % .

Brothers Company sold merchandise for $3,100. The event is subject to a state sales tax of 9%. Based on this information, Brothers would be required to:
recognize sales revenue of $2,821.
recognize sales tax liability of $279.
recognize sales revenue of $3,379.
recognize sales tax expense of $279.
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