On October 2, 2020, Sandhill Company sold $6,250 of its elite camping gear (with a cost of $3,420) to Lynch Outfitter5. As part of the sales agreement, Sandhill includes a provision that if Lynch is dissatisfied with the product. Sanchill 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 Sandhill and Lynch). Sandhill expects total allowances to Lynch to be $840. On October 16,2020, Sand hill 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. (a) Prepare journal entries for Sandhill 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 Sandhill prepares financial statements). Sandhill now estimates additional allowances of $260 will be granted to Lynch in the future. (Credit dccount titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter of for the amounts.) Prepare journal entries for Sandhill to record (1) the sale on October 2, 2020, (2) the granting of the allowarice on October 16 . 2020, and, (3) any adjusting required on October 31, 2020 (when Sandhill prepares financial statements). Sandhill now estimates additional allowances of $260 will be granted to Lynch in the future. (Credit occount titles are outomatically indented when the Indicate the income statement and balance sheet reporting by Sandhill at October 31, 2020, of the information related to the Lynch transaction