McDowell Corporation reports it sold merchandise on account for a total of $3,840,000 for the current year. The cost to McDowell for the merchandise was $1,440,000. To encourage early payment, McDowell offers its customers credit terms of 1/10, n/30. At year-end, there is $600,000 of sales on account still eligible for the 1 percent discount. McDowell believes that all customers will pay within the discount period to receive the discount. Prepare the adjusting journal entry needed for McDowell Corporation to comply with the new revenue recognition standard. Assume McDowells fiscal year-end is December 31.

General Journal
Description	Debit	Credit
AnswerAllowance for sales discountsCashCost of goods soldSales discounts	Answer	Answer
AnswerAllowance for sales discountsCashCost of goods soldSales discounts	Answer	Answer