On January 1, 20X1, Umbrella Enterprises, a new firm, paid $7,320 rent in advance for a three-month period. The $7,320 was debited to the Prepaid Rent account. On January 1, 20X1, the firm bought supplies for $4,100. The $4,100 was debited to the Supplies account. An inventory of supplies at the end of January showed that supplies costing $1,550 were on hand. On January 1, 20X1, the firm bought equipment costing $14,400. The equipment has an expected useful life of 10 years and a salvage value of $1,200. The firm will use the straight-line method of depreciation