Consider the following events:

Sept. 23 Dexter Maersk decides to buy a custom-made snowboard and calls the Great Canadian Snowboard Corporation to inquire about its products.

28 Dexter asks Great Canadian Snowboard to manufacture a custom board for him.

Oct. 3 The Company sends Dexter a purchase order to fill out, which he immediately completes, signs, and sends back with a required 25% down payment.

7 Great Canadian Snowboard receives Dexter's purchase order and down payment, and begins working on the board.

Dec. 31 Great Canadian Snowboard has its fiscal year end. At this time, Dexter's board is 75% completed.

Jan. 28 The Company completes the snowboard for Dexter and notifies him that he can take delivery.

Feb. 3 Dexter picks up his snowboard from the company and takes it home.

4 Dexter tries the snowboard out and likes it so much that he carves his initials in it.

21 Great Canadian Snowboard bills Dexter for the cost of the snowboard, less the 25% down payment.

28 The company receives partial payment (another 25%) from Dexter.

Mar. 18 The company receives payment of the remaining amount due from Dexter.

Instructions

(a) In a memo to the president of Great Canadian Snowboard, a publicly-traded company, outline the alternatives for how, and recommend when, the company should record the sales revenue and cost of goods sold related to the snowboard.

(b) If Dexter had not been required to make a down payment with his purchase order, would your answer to part (a) be different