Pharoah Cafe sells gift cards in $$27$ increments. Based on experience, Pharoah estimates that $30\%$ of the gift cards will not be

redeemed. During $2025,$ the restaurant had total gift card sales of $$8800,$ of which $40\%$ of the estimated amount were redeemed.

The liability that Pharoah will report at December $31,2025$ with regard to $2025$ gift card sales is

$$3771$

$$2771$

$$3520$

$$4224$