On December 1. Milton Company borrowed $500,000, at 9% 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? Multiple Choice Debit Interest Expense, $3,750, credit Cash, $3,750. Debit Interest Expense, $7.500credit Interest Payable, $7,500. Debit Interest Expense, $3,750, credit Interest Payable, $3,750. Debit Interest Payable, $3,750, credit Interest Expense, $3,750. Debit Interest Expense, $45,000, credit Interest Payable, $45,000 On September 1. Kennedy Company loaned $126,000, at 14% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? Multiple Choice Debit Interest Expense. $17,640, credit Interest Payable, $17.640. Debit Interest Expense, $5,880: credit Interest Payable, $5,880. o Debit Interest Receivable, $5,880, credit Interest Revenue, $5,880 Debit Interest Receivable, $17.540, credit Cash, $17,640 Debit Cash, $5,880, credit Interest Revenue, $5,880