On October 2, 2020, Flint Company sold $6,250 of its elite camping gear (with a cost of $3,420) to Lynch Outfitters. As part of the sales agreement, Flint includes a provision that if Lynch is dissatisfied with the product, Flint 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 Flint and Lynch). Flint expects total allowances to Lynch to be $840. On October 16, 2020, Flint grants an allowance of $380 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog.

Prepare journal entries for Flint 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 Flint prepares financial statements). Flint now estimates additional allowances of $260 will be granted to Lynch in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

No	Account Titles and Explanation	Debit	Credit
(1)
	(To record sales on account)
	(To record cost of goods sold)
(2)
	(To record allowance)
(3)
	(To record estimated remaining allowances)

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List of Accounts

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

Income Statement (partial) October 31, 2020For the Quarter Ended October 31, 2020
Accounts receivableCost of goods soldAccounts payableInterest expensesSales returns and allowancesSales revenue		$
AddLess: Sales revenueSales returns and allowancesAccounts payableInterest expensesCost of goods soldAccounts receivable
Dividends DeclaredExpensesGross profitNet Income / (Loss)Net Income to Retained EarningsNet SalesRetained Earnings 11/1Retained Earnings 10/31RevenuesTotal Cost & ExpensesTotal Revenues
Interest expensesAccounts payableSales returns and allowancesSales revenueAccounts receivableCost of goods sold
Dividends DeclaredExpensesGross profitNet Income / (Loss)Net Income to Retained EarningsNet SalesRetained Earnings 11/1Retained Earnings 10/31RevenuesTotal Cost & ExpensesTotal Revenues		$

Balance Sheet (partial) October 31, 2020For the Year Ended October 31, 2020For the Quarter Ended October 31, 2020
Cost of goods soldAccounts receivableSales revenueSales returns and allowancesInterest expensesAccounts payable		$
AddLess: Allowance for Sales returns and allowancesAccounts payableSales revenueInterest expensesAccounts receivableCost of goods sold
Sales returns and allowancesAccounts receivable (net)Sales revenueInterest expensesAccounts payableCost of goods sold		$