The One sold \(\$ 5,000,000\) of merchandise on account during the current year. The cost for this merchandise to TheOne was \(\$ 1,400,000\). To encourage early payment from its customers, TheOne offers credit terms of \(2 / 10, n / 30\). At year-end, TheOne recognizes that there are \(\$ 500,000\) of sales on account still eligible for the 2 percent discount. TheOne believes that all customers will pay within the discount period to receive this discount. In addition, TheOne allows a 60 -day return privilege for the merchandise it sells. At year-end, TheOne estimates there remain \(\$ 600,000\) of sales (with a cost to TheOne of \(\$ 168,000\) ) that are still within the 60-day return period and that, based on past experience, 4 percent of this merchandise is expected to be returned. Prepare the period-end adjusting journal entries needed for TheOne to comply with the new revenue recognition standard. Assume TheOne's fiscal year-end is December 31.