Hi-Tech is a retailer of computers and computer supplies to small businesses.The following informationis based on items in its income statement for the year ending December 31, 2019: Advertising expense $600 Cost of goods sold 40.000 Delivery expense 4.000 Depreciation expense-General and administrative 200 Depreciation expense-Selling 800 Freight-in 600 Goods available for sale 49.800 Gross profit on sale 20.000 Gross sales 62.200 Merchandise inventory, January 1, 2017 10.000 Office salaries expense 2.000 Purchase discounts 800 Purchase returns and allowances 1.000 Sales discounts 1.500 Sales salaries expense 8.000 Required: (60 minutes) 1. Compute the balance of the Purchase account. 2. Compute the ending merchandise inventory. 3. Compute the balance of the Sales Returns and Allowances. 4. Prepare the income statement.