1. If a Chicago-based company ships goods on September 30 to a customer in Hawaii with sales terms FOB destination, does the Chicago-based company include the inventory or the sale in its September financial statements? (2 points available) 2. Why is a physical count of inventory necessary in a periodic inventory systems? Why is it still necessary in a perpetual system? (2 points available) 3. What is the difference between FOB shipping point and FOB destination? How do these terms relate to the revenue principle? (3 points available) 4. What is the distinction between Sales Returns and Sales Allowances? (2 points available) 5. What is gross profit? (1 point available)