On October 2, 2020, Laplante Company sold $6,000 of its elite camping gear (with a cost of $3,600) to Lynch Outfitters. As part of the sales agreement, Laplante includes a provision that if Lynch is dissatisfied with the product, Laplante 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 Laplante and Lynch), Laplante expects total allowances to Lynch to be $800. On October 16, 2020, Laplante grants an allowance of $400 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog. (a) Your Answer Correct Answer (Used) Your answer is partially correct. Prepare journal entries for Laplante 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 Laplante prepares financial statements). Laplante now estimates additional allowances of $250 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 O for the amounts.) Sales revenue Income Statement (partial) For the Quarter Ended October 31, 2020 Less Sales returns and allowances Net Sales Cost of goods sold 6000 250 5750 3600 Accounts receivable Balance Sheet (partial) October 31, 2020 Less : Allowance for Sales returns and allowances Accounts receivable (net) 6000 250 i 5750