On October 2, 2020, Pronghorn Company sold $5,720 of its elite camping gear (with a cost of $3,720) to Lynch Outfitters. As part of the sales agreement, Pronghorn includes a provision that if Lynch is dissatisfied with the product, Pronghorn 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 Pronghorn and Lynch). Pronghorn expects total allowances to Lynch to be $770. On October 16, 2020, Pronghorn grants an allowance of $390 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 Pronghorn 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 Pronghorn prepares financial statements). Pronghorn 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.) 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) Indicate the income statement and balance sheet reporting by Pronghorn at October 31, 2020, of the information related to the Lynch transaction. Income Statement (partial) Balance Sheet (partial)