After reviewing the trial balance and other accounting records you discover the following:a$)$ The company uses a periodic inventory system with an average cost flow method. A count ofinventory on December $31$st$,,2024$ showed $97,000$ units on hand. The opening inventory onhand at January $1$st$,2024$ was $107,000$ units. Russell Industries only sells one product.b$)$ Below is a summary of the inventory purchases for the year ended December $31,2024$Date Units Cost$/$UnitJan $1566,0004\mathrm{.}44$Mar $2214,0004\mathrm{.}24$July $19106,0004\mathrm{.}16$Sept $3035,6404\mathrm{.}00$Nov $1682,0004\mathrm{.}44$c$)40,000$ units of inventory were shipped by the supplier on December $31,2024$ fob shipping pointat a cost of $$172,800.$ Insurance for the inventory while in transit costs $$3,449.$ This shipment isnot included in the above listing, or the physical inventory count. No adjustment has beenrecorded for this purchase.d$)$ The CEO provides the following collectability information for accounts receivable. He alsomentions that included in the over $120$ days balance is $$52,000$ owing from a company that hassince gone bankrupt. No collection is expected.Age Balance Estimated collectible $\%$Under $60$ days $$767,00092\%61-90$ days $$435,00088\%91-120$ days $$27,00080\%$Over $120$ days $$66,00044\%$No adjustments have been recorded to the allowance for doubtful accounts.e$)$ Bank fees of $$472$ for the month of December have not been recorded. Outstanding chequestotal $$34,000$ and there is an outstanding deposit of $$15,000.$ The bank made an error whencashing a cheque on December $15$th$.$ The cheque was written for $$625$ but cashed for $$652.$ Thebank account balance per the bank statement is $$1,100,501$ at December $31$st$.$f$)$ The balance in the prepaid expenses account is for building insurance for the period of January$1$st to May $31$st$,2024.$ On June $1$st$,2024,$ $$24,000$ was paid for insurance for the period of June$1$st$,2024$ to May $31,2025.$ The entire $$24,000$ was debited to the Insurance Expense account. Noother adjustments for prepaids or insurance expense have been doneg$)$ The future bank loan payments are as follows:a$.$ March $31$st$,2025-$ $$50,000$b$.$ September $30,2025-$ $$50,000$c$.$ March $31,2026-$ $$50,000$d$.$ September $30,2026-$ $$50,000$ Required:$1)$ Prepare any necessary adjusting entries$\mathrm{.}2)$ Calculate the value of ending inventory and cost of goods sold$\mathrm{.}3)$ Prepare a bank reconciliation at December $31,20244)$ Prepare Russell Industries income statement and statement of changes in equity for the yearended December $31,2024.$ Prepare a classified statement of financial position as at December$31,2024\mathrm{.}5)$ Prepare the closing entries for the year ended December $31,2024\mathrm{.}6)$ Prepare the post$-$closing trial balance$\mathrm{.}7)$ In April $2025,$ was discovered that $5,000$ units of inventory included in the ending inventorybalance was damaged at December $31$st and not saleable. Discuss how this error would impactthe $2024$ financial statements.