Answer:
at the moment of sale. Right there.
Explanation:
As the business is using an accrual basis it will recognize both, income and expense when they occur. This sale occurs at the moment Larry receive the CD and so, the sales is complete. It will be disclosure and recognize in the income statement. The payment date is not relevant under accrual basis
Same will occur with expenses, when the period past or supplies are used, the expense will be recognize regardless of the payment date.
