On October $2,2025,$ Oriole Company sold $$6,530$ of its elite camping gear $($with a cost of $$3,880)$ to Winds Outfitters. As part of the sales agreement, Oriole includes a provision that if Winds is dissatisfied with the product, Oriole 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 Oriole and Winds$).$ Wind expects total allowances to Winds to be $$780.$ On October $16,2025,$ Oriole grants an allowance of $$410$ to Winds because the color for some of the items delivered was a bit different than what appeared in the catalog.

$($a$)$

Prepare journal entries for Oriole 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 Oriole prepares financial statements$).$ Oriole now estimates additional allowances of $$240$ will be granted to Winds 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.$)$

No

Date

Account Titles and Explanation

Debit

$(1)$

$($To record sales on account$)$