A manufacturing company sells specialized parts to a new customer. The parts are made-to-order and they will have to be inspected and tested by the customer before the order is accepted. If the order fails the inspection the manufacturer will have to repair or replace the parts, which means making them again. Payment is due 30 days after the parts have been inspected and accepted. A credit check found that the customer has a good history of paying its bills in full and on time.

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When should the manufacturing company recognize the revenue from the sale?