The following situation is in chronological order.
1. Connor decides to buy a surfboard.
2. He calls Surfing USA Co. to inquire about its surfboards.
3. Two days later, he requests Surfing USA Co. to make a surfboard.
4. Three days later, Surfing USA Co. sends him a purchase order to fill out.
5. He sends back the purchase order.
6. Surfing USA Co. receives the completed purchase order.
7. Surfing USA Co. completes the surfboard.
8. Connor picks up the surfboard.
9. Surfing USA Co. bills Connor.
10. Surfing USA Co. receives payment from Connor.
Instructions
In a memo to the president of Surfing USA Co., answer the following.
(a) When should Surfing USA Co. record the sale?
(b) Suppose that with his purchase order, Connor is required to make a down payment. Would that change your answer?