Question: New Revenue Recognition Standard-Adjusting Journal Entry-Sales Discounts McDowell Corporation reports it sold merchandise on account for a total of $4,000,000 for the current year. The cost to McDowell for the merchandise was $1,500,000. To encourage early payment, McDowell offers its customers credit terms of 1/10, n/30. At year-end, there is $625,000 of sales on account still eligible for the 1 percent discount. McDowell believes that all customers will pay within the discount period to receive the discount. Prepare the adjusting journal entry needed for McDowell Corporation to comply with the new revenue recognition standard. Assume McDowell's fiscal year-end is December 31. General Journal Description Debit Credit