SourceOne sold $8,000,000 of merchandise on account during the current year. The cost for this merchandise to SourceOne was $2,800,000. To encourage early payment from its customers, SourceOne offers credit terms of 2/10, n/30. At year-end, SourceOne recognizes that there are $750,000 of sales on account still eligible for the 2 percent discount. SourceOne believes that all customers will pay within the discount period to receive this discount. In addition, SourceOne allows a 60-day return privilege for the merchandise it sells. At year-end, SourceOne estimates there remain $1,400,000 of sales (with a cost to SourceOne of $490,000) 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 SourceOne to comply with the new revenue recognition standard. Assume SourceOnes fiscal year-end is December 31.

I need a line by line adjustment detailing the description and credit/debit amount.