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?

Fred will recognize commission revenue earned in the amount of $3,000 in August.

Jacob will recognize commission expense in the amount of $3,000 in August.

Fred will recognize commission expense in the amount of $3,000 in September.

Fred will recognize revenue in the same month that the tractor dealer recognizes expense.