Revenue Recognition Standard-Adjusting Journal Entries Prime sold $2,000,000 of merchandise on account during the current year. The cost for this merchandise to Prime was $800,000. To encourage early payment from its customers, Prime offers credit terms of 2/10, n/30. At year-end, Prime recognizes that there are $350,000 of sales on account still eligible for the 2 percent discount. Prime believes that all customers will pay within the discount period to receive this discount. In addition, Prime allows a 60-day return privilege for the merchandise it sells. At year-end, Prime estimates there remain $450,000 of sales (with a cost to Prime of $180,000) that are still within the 60-day return period and that, based on past experience, 7 percent of this merchandise is expected to be returned. Prepare the period-end adjusting journal entries needed for Prime to comply with the revenue recognition standard. Assume Prime'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