In Preparing Its Adjusting Entries at the End of This

In preparing its adjusting entries at the end of this year, Southwestern Company neglected to accrue commissions earned but not yet received or recorded. This error:

A) Understates this year's net income and overstates both assets and retained earnings at year-end
B) Overstates this year's net income and overstates both assets and retained earnings at year-end
C) Understates this year's net income and understates both assets and retained earnings at year-end
D) Overstates this year's net income and understates both assets and retained earnings at year-end
E) None of the above