On October 1, Reid Supply had an inventory of 15 backpacks at a cost of $20 each. The company uses a perpetual inventory system. During October, the following transactions and events occurred. Make the journal entries in the space provided. (Dates are out of order for simplification of recording)

Oct. 1 Paid for 4 months of rent in the amount of $5,000

Oct. 4 Purchased 70 backpacks at $20 each from Hunter, terms 2/10, n/30.

Oct. 14 Paid Hunter in full, less discount

Oct. 9 Sold 40 backpacks for $35 each to Oliver Books, terms 2/15, n/45; cost $20 each

Oct. 5 Purchased $875 worth of office supplies on account

Oct. 19 Received payment, less discount, from Oliver Books

Oct. 20 Received payment, in advance, from Ira Rich, $600.

Oct. 21 Paid utilities for the month, $475

Oct. 31 Make the following adjusting entries:

1. A count of supplies shows $400 remaining out of what was purchased during the month (Oct. 5 transaction)
2. Depreciation on equipment for the month is $350
3. One month of rent has expired
4. The allowance account currently has a zero balance. It is estimated that $600 will become uncollectible within the next accounting period