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On October 2, 2020, Riverbed Company sold $6,520 of its elite camping gear (with cost of $3,240 ) to Lynch Outfitters. As part of the sales agreement, Riverbed includes a provision that if Lynch is dissatisfied with the product. Riverbed 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 Riverbed and Lynch). Riverbed expects total allowances to Lynch to be $800. On October 16, 2020, Riverbed grants an allowance of $390 to iynch because the color for some of the items delivered was a bit different than what appeared in the catalog. (a) Your answer is correct. Prepare journal entries for Riverbed 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 Riverbed prepares financial statements). Riverbed 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 occount titles and enter of for the amounts.) Indicate the income statement and balance sheet reportine by Riverbed at October 31,2020, of the information related to the Lynch transaction

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