Also, FICA tax rates are fixed percentages, while federal income tax rates are progressive and vary based on income levels. The Social Security portion of FICA funds benefits for retirees, disabled individuals, and certain dependents of deceased workers. Employees pay 6.2% of their wages, and employers match this amount, bringing the total contribution to 12.4%.…

Hence, making journal entry of bad debt expense this way conforms with the matching principle of accounting. The percentage of sales of estimating bad debts involves determining the percentage of total credit sales that is uncollectible. The past experience with the customer and the anticipated credit policy plays a role in determining the percentage. Bad…