Sheffield Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Sheffield will receive a payment of $7,900,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Sheffield determines it is 9% likely that the drug will gain approval and a 5% chance of denial. Determine the transaction price of the arrangement for Sheffield Biotech. Transaction price $ Assuming that regulatory approval was granted on December 20, 2020, and that Sheffield received the payment from Pang on January 15, 2021, prepare the journal entries for Sheffield. The license meets the criteria for point-in-time revenue recognition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit