John Smith has cumulative yearly earnings of $24,700, counting his current pay period salary amount of $3,500. Assume the FICA tax rate is 6.2 percent for Social Security, with a limit of $ 113,700, and 1.45 percent for Medicare, applied to all earnings. The FUTA tax is 0.6 percent, with a limit of $7,000, and the SUTA tax is 5.4 percent, with a limit of $7,000. The employer's payroll tax expense entry will include a credit to