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E5-10B. New Revenue Recognition Standard-Adjusting Journal Entries Prime Tech sold $2,000.000 of merchandise on account...

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E5-10B. New Revenue Recognition Standard-Adjusting Journal Entries Prime Tech sold $2,000.000 of merchandise on account during the current year. The cost for this merchandise to PrimeTech was S600,000. To encourage early payment from its customers, Prime Tech offers credit terms of 2/10 n/30. At year-end, Prime Tech recognizes that there are $200,000 of sales on account still eligible for the 2 percent discount. Prime Tech believes that all customers will pay within the discount period to receive this discount. In addition, Prime Tech allows a 60-day return privilege for the merchandise it sells. At year-end, Prime Tech estimates there remain $450,000 of sales (with a cost to PrimeTech of S135,000) 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 Tech to comply with the new revenue recognition standard. Assume Prime Tech's fiscal year- end is December 31

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