Revenue Recognition Standard-Adjusting Journal Entries During the year, Price Company sells merchandise on account totaling $10,000,000 with a cost of merchandise to Price of $5,000,000. Price offers its customers credit terms of 1/15, n/30. Price recognizes that there are $900,000 of sales on account still eligible for the 1 percent discount at year-end and believes that all customers will pay within the discount period. Additionally, Price allows a 90-day return privilege for the merchandise it sells. At year-end, Price estimates sales of $2,500,000 (with a cost to Price of $1,250,000) remain that are still within the 90-day return period. From past experience, 8 percent of this merchandise is expected to be returned. Prepare the period-end adjusting journal entries needed for Price Company to comply with the revenue recognition standard. Price's fiscal year-end is December 31. General Journal Description Debit Credit To record estimated sales discounts. To record estimated return of sales still eligible for return. To record the cost of merchandise sold for sales still eligible for return