The following situation is presented in chronological order.1. Finley 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. Finley picks up the surfboard.9. Surfing USA Co. bills Finley.10. Surfing USA Co. receives payment from Finley.InstructionsIn a memo to the president of Surfing USA Co., answer the following questions.(a) When should Surfing USA Co. record the sale?(b) Suppose that with his purchase order, Finley is required to make a down payment. Would that change your answer to part (a)?
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