A Real Estate Company Pays Its Agents on Commission

A real estate company pays its agents on commission.Which of the following situations violates the matching principle during Year 1?

A) Sales commissions are charged to expense in Year 1 on all sales made in Year 1 even though some of the commissions have not been paid.
B) Insurance expense is recognized for the total cost of a one-year policy purchased in July Year 1.
C) Wages expense is recognized in Year 1 even though payday is not until sometime in Year 2.
D) Sales commissions paid in Year 1 for Year 2 commissions are recorded as prepaid expenses for Year 1.