Revenue Recognition Standard-Adjusting Journal Entries Prime sold \(\$ 2,000,000\) of merchandise on account during the current year. The cost for this merchandise to Prime was \(\$ 800,000\). To encourage early payment from its customers, Prime offers credit terms of \(2 / 10, n / 30\). At year-end, Prime recognizes that there are \(\$ 350,000\) of sales on account still eligible for the 2 percent discount. Prime believes that all customers will pay within the discount period to receive this discount. In addition, Prime allows a 60-day return privilege for the merchandise it sells. At year-end, Prime estimates there remain \(\$ 450,000\) of sales (with a cost to Prime of \(\$ 180,000\) ) that are still within the 60 -day return period and that, based on past experience, 7 percent of this merchandise is expected to be returned. Prepare the period-end adjusting journal entries needed for Prime to comply with the revenue recognition standard. Assume Prime's fiscal year-end is December 31.