Hi -- Absolutely, if your Daughter was intending to purchase this subject to finance which for whatever reason has been declined, then she is under no obligation to proceed with the purchase.
It's their own fault for jumping to the wrong assumption and ordering it before finance agreements were given the official approval.
This applies to any goods or services that were to be funded by credit, if the application for credit is not approved. then the sale falls flat on it's face and is deemed as if the sale was not agreed.