3. Morris Company uses cash-basis accounting for its records. During 2020, Morris collected $150,000 from its customers, made payments of $70,000 to its suppliers for merchandise inventory, and paid $40,000 for operating costs. Morris wants to prepare its financial statements on an accrual basis. In gathering information for the accrual-basis financial statements, Morris discovered the following: At the beginning of 2020, customers owed Morris $20,000, and Morris owed suppliers $7,000 At the end of 2020, customers owed Morris $30,000, and Morris owed suppliers $11,000. Two years ago, Morris purchased equipment for $10,000. The equipment has a useful life of five years and no salvage value. For the year 2020, Morris's beginning inventory was $5,000, and its ending inventory was $ 6,500 . At the beginning of 2020 , Morris had prepaid rent of $3,000. At the end of the year, Morris had prepaid rent of $500. Using accrual accounting , prepare an income statement for 2019 for Morris Company