On October $2,2025,$ Crane Company sold $$6,260$ of its elite camping gear $($with a cost of $$3,900)$ to Windsor Outfitters. As part of the sales agreement, Crane includes a provision that if Windsor, is dissatisfied with the product, Crane 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 Crane and Windsor$).$ Windsor expects total allowances to Windsor to be $$800.$ On October $16,2025,$ Crane grants an allowance of $$400$ to Windsor 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 Crane to record $(1)$ the sale on October $2,2025,(2)$ the granting of the allowance on October $16,2025,$ and, $(3)$ any adjusting required on October $31,2025($when Crane prepares financial statements$).$ Crane now estimates additional allowances of $$240$ will be granted to Windsor 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 $0$ for the amounts. List all debit entries before credit entries.$)$