Suppose that with his purchase order aikan is required to


Question: The following situation is presented in chronological order.

1. Aikan decides to buy a surfboard.

2. He calls Surfing Hawaii Co. to inquire about their surfboards.

3. Two days later, he requests Surfing Hawaii Co. to make him a surfboard.

4. Three days later, Surfing Hawaii Co. sends him a purchase order to fill out.

5. He sends back the purchase order.

6. Surfing Hawaii Co. receives the completed purchase order.

7. Surfing Hawaii Co. completes the surfboard.

8. Aikan picks up the surfboard.

9. Surfing Hawaii Co. bills Aikan.

10. Surfing Hawaii Co. receives payment from Aikan. Instructions In a memo to the president of Surfing Hawaii Co., answer the following questions.

(a) When should Surfing Hawaii Co. record the sale?

(b) Suppose that with his purchase order, Aikan is required to make a down payment. Would that change your answer to part (a)?

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Accounting Basics: Suppose that with his purchase order aikan is required to
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