3. Which of the following is paid by the employer only?

Employee income tax

OASDI tax

Federal unemployment tax

Medicare tax

4. Saran Digital Inc. starts the year with $2,500 in its Estimated Warranty Payable account. During the year, there were $210,000 of sales and $4,500 of warranty repair payments. Saran Digital estimates warranty expense at 2% of sales. At the end of the year, what is the balance in the Estimated Warranty Payable account?

$4,200 debit

$2,500 debit

$4,500 credit

$2,200 credit