Q3 The home office of Basra Company ships merchandise to its branch at a billed price that includes a markup on home office cost of 25%. The information about year 2019 are analyzed as follows: Details Inventory Jan 1,2019 at billed price Merchandise Shipment from home office during 2019 at billed price units Price per unit 20 $ 4,000 120 60 at $ 4,100 20 at 4,500 40 at 4,600 12 At last shipment's price 100 At 5,500 6 ? ? Merchandise returns to home office during 2019 Sales during 2019 at branch sales price Sales returns from customers Sales allowances to customers (2% of total sales) Operating expenses $ 20,000 Required: by use periodic inventory system & FIFO valuation method 1. Compute the units of ending inventory. 2. Prepare income statement for branch for year ended Dec. 31,2019. 3. Prepare closing entries at branch records. 4. Prepare adjusting entries at home office records