New Revenue Recognition Standard-Adjusting Journal Entries-Sales Returns and Allowances During the year, Raul Company sells merchandise on account totaling $2,000,000 (the cost to Raul for this merchandise was $800,000 ). Raul allows a 60-day return privilege for the merchandise it sells. At year-end, Raul estimates there remain $400,000 of sales (with a cost to Raul of $160,000 ) that are still within the 60-day return period. Based on past experience, Raul expects 5 percent of this merchandise to be returned. Prepare the period-end adjusting journal entries needed for Raul Company to comply with the new revenue recognition standard. Raul's fiscal year-end is December 31