Holten Farm Sells New Tractors and Pays Each Salesperson a Commission

Holten Farm sells new tractors and pays each salesperson a commission of $1,000 for each tractor sold.During the month of August, a salesperson, Fred, sold 3 new tractors.Jacob pays Jason on the 10th day of the month following the sale.Fred operates on the cash basis; the tractor dealer operates on the accrual basis.Which of the following statements is true?

A) Fred will recognize commission revenue earned in the amount of $3,000 in August.
B) Jacob will recognize commission expense in the amount of $3,000 in August.
C) Fred will recognize commission expense in the amount of $3,000 in September.
D) Fred will recognize revenue in the same month that the tractor dealer recognizes expense.