The Longo Corporation contracted with The Davis Company to manufacture various metal component parts that would be assembled by Longo before resale to Longo’s customers. Longo placed its most recent order with Davis for 10,000 parts in December 2016. Because of existing work commitments, however, Davis indicated that work on the Longo order could not commence until January 2017, with an expected delivery date of February 2017. Davis provides its customers with trade credit terms of 2/10, n/30, and thus; didn’t expect to be paid the contract price of \($100,000\) by Longo until March 2017.

In which month should Davis Company recognize the \($100,000\) in revenue from the Longo order? Why?