1- On December 1, Milton Company borrowed $300,000, at 8% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? Select one: a. Debit Interest Expense, $2,000; credit Interest Payable, $2,000. b. Debit Interest Payable, $2,000; credit Interest Expense, $2,000. c. Debit Interest Expense, $4,000; credit Interest Payable, $4,000. d. Debit Interest Expense, $2,000; credit Cash, $2,000.

2- On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Select one: a. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300. b. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. c. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. d. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. e. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.