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The following situation is in chronological order.
1. Flutie decides to buy a surfboard.2. He calls Surfing USA Co. to inquire about their surfboards.3. Two days later he requests Surfing USA Co. to make him 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. Flutie picks up the surfboard.9. Surfing USA Co. bills Flutie.10. Surfing USA Co. receives payment from Flutie.
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, Flutie is required to make a down payment. Would that change your answer?
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