Aurora Aluminum, a vendor to Bostian Enterprises, receives Bostian's purchase order for computer drill sheets. Bostian, a maker of electronic circuit boards, implemented a produc- tion process designed to take advantage of just-in-time inventory management techniques. Accordingly, its purchase order specifically states that delivery is to be made to Bostian's as- sembly plant at 1 P.M. on January 16, 2009 and that payment will be 30 days after delivery. Aurora had a lull in production activity and decided to produce Bostian's order over the Christmas holidays. After producing the material on December 27, it promptly loaded the or- der on a staged trailer, which was immediately locked and sealed. An invoice and a bill of lad- ing were prepared. The invoice was immediately sent to Bostian on a "bill and hold" basis. Upon receiving the invoice, Bostian contacted Aurora, which said that the material was invoiced because Aurora wanted to include the sale in its just closed calendar year-end; however, actual delivery would take place in accordance with the purchase order terms and that payment would be expected 30 days after delivery. Moreover, risk of ownership would remain with Aurora until delivery. Bostian accepted the explanation and reminded Aurora that it could not accept the material prior to its scheduled delivery date due to space constraints.
Required:
Was Aurora correct to include the Bostian transaction as a sale and account receivable in calendar year 2008? Explain.