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. (a) Prepare journal entries for Novak 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 Novak prepares financial statements). Novak now estimates additional allowances of $ 240 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 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)