Exercise 18-18 On October 2, 2017, Sarasota Company sold $6,220 of its elite camping gear (with a cost of $3,670) to Lynch Outfitters on credit. As part of the sales agreement, Sarasota includes a provision that if Lynch is dissatisfied with the product, Sarasota 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 Sarasota and Lynch). Sarasota expects total allowances to Lynch to be $790, on October 16, 2017, Sarasota 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