You are the chief accountant for the Seal Company, which produces candy bars.

You like your job very much, and one reason is that your best friend, Stacy Monroe, is a salesperson for Seal.

Seal primarily markets its candy bars to grocery chains, which buy in large quantities. As December 31 (Seal’s year-end) approaches, your friend Stacy worries that she will not achieve her sales quota. If the quota is not met, Stacy will not receive the rather large bonus she had been counting on.

With just one week to go before year-end, Stacy receives a big order; in fact, the order will enable her to meet her quota and receive her bonus. There’s just one problem. Seal’s sales terms are that the customer takes title to the candy when Seal transfers the candy to an independent trucker. At that point, Seal records the revenue and Stacy gets credit for the sale. You assure Stacy that one week is plenty of time to process the order. Stacy is so elated that she celebrates by buying a $20,000 car.

On December 31, Stacy’s order is ready to be shipped and is awaiting the trucker. Although this particular trucker is usually reliable, he phones to say that a blizzard will prevent him from arriving until January 2.

Stacy is understandably upset. She purchased a new car based on your assurance that she would receive her bonus, and it now appears that her bonus will not materialize.

Required Describe how the sale on December 31 should be recorded, thus enabling Stacy to receive (or not receive) the bonus.