Heart of the City Electrical Supplies are merchandisers ofhousehold fixtures & fittings. The business began the lastquarter of 2017 (October to December) with 25 Starburst Wall Clocksat a total cost of $153,000. The following transactions took placeduring the quarter. October 10 100 clocks were purchased on accountat a cost of $6,225 each. In addition, Heart paid $120 cash on eachclock to have the inventory shipped from the vendor’s warehouse totheir warehouse October 31 During the month 90 clocks were sold ata price of $8,300 each. (20 of these clocks sold were on account toa long-standing customer of the business) November 1 A new batch of60 clocks was purchased at a total cost of $406,500 November 10 5of the clocks purchased on November 1 were returned to thesupplier, as they were damaged November 30 The sales for Novemberwere 58 clocks which yielded total sales revenue of $428,000December 2 Owing to increased demand, a further 110 clocks werepurchased at a cost of $7,400 each and these were subject to atrade discount of 2% each. December 6 William Paul, a customer towhom 8 clocks were sold at the start of the first business day inNovember, returned 2 of the clocks, as they did not match hisspecifications. December 31 117 clocks were sold during December ata unit selling price of $9,220. December 31 An actual inventorycount was carried out which revealed that there were 22 Starburstwall clocks in the store room. Unless otherwise stated, assume thatall purchases are on account and all sales are for cash. Required:i) Prepare a perpetual inventory record for this merchandise, usingthe last in, first out (LIFO) method of inventory valuation, todetermine the company’s cost of goods sold for the quarter and thevalue of ending inventory. ii) Given that selling &distribution and administrative costs for the quarter were $96,800and $134,400 respectively, prepare an income statement for Heart ofthe City Electrical Supplies for the period ended December 31, 2017iii) State the journal entries necessary to record the transactionson October 10 and October 31, assuming the company uses a:-Periodic inventory system -Perpetual inventory system