On October 2, 2020, Novak Company sold $ 6,600 of its elite camping gear (with a cost of $ 3,460) to Lynch Outfitters. As part of the sales agreement, Novak includes a provision that if Lynch is dissatisfied with the product, Novak 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 Novak and Lynch). Novak expects total allowances to Lynch to be $ 840. On October 16, 2020, Novak 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. Indicate the income statement and balance sheet reporting by Novak at October 31, 2020, of the information related to the Lynch transaction Income Statement (partial) For the Quarter Ended October 31, 2020 $