(b) Indicate the income statement and balance sheet reporting by Flint at October 31, 2020, of the information related to the Lynch transaction.

On October 2, 2020, Blossom Company sold $6,530 of its elite camping gear (with a cost of $3,880 ) to Lynch Outfitters. As part of the sales agreement, Blossom includes a provision that if Lynch is dissatisfied with the product, Blossom will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Biossom and Lynch). Blossom expects total allowances to Lynch to be $780. On October 16, 2020, Blossom grants an allowance of \$410 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog. (a) Your answer is partially correct. Prepare joumal entries for Blossom to record (1) the sale on October 2, 2020, (2) the granting of the allowance on October 16, 2020, and, (3) any adjusting required on October 31, 2020 (when Blossom prepares financial statements). Blossom now estimates additional aliowances of $240 will be granted to Lynch in the future. (Credit occount tides ore outomotically indented when the amount is entered. Do not indent manually. If no entry/s required, select "No entry" for the account tities and enter O for the anounts]