5. The following data were extracted from the accounting records of Dana Designs for the year ended March 31. Merchandise inventory, April 1 $530,000 Merchandise inventory, March 31 375,000 Purchases 270,000 Purchases returns and allowances 25,000 Purchases discounts 10,000 Sales 770,000 Freight in 3,000 Prepare the cost of merchandise sold section of the income statement for the year ended March 31, using the periodic method