Revenue Recognition Standard$-$Adjusting Journal Entries

TheOne 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 $\frac{2}{10},\frac{n}{30}.$ 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 $31.$