On December 1, Miton Company borrowed $430,000, at 98 annual interest, from the Tennessee Nationai Bank. Interest is poid when the loan matures ane year from the issue diate. What is the adjusting entry for accruing interest that Milton would need to make on December 31 , the calendar.year-end? Muitiole Choice Debit intesest Poyoble, 532225 , credt metest Expense, $3.225 Doon ineesent ixpense. \$3.225. credit interest Poyoble. 53.225 Debn irecest Expense. $2.225. credit Cash. $3.220 Debin interest Expense, 56.450, creda incerest Popotse, 56450 On March 12. Ksein Company sold merchandise in the amount of $9600 to Babson Company, with credit teims of 210 , n/30. The cost of the itemis soldt is 55.400. Krein uses the perpetual inventory system and the net method of accounting for sales. On March 15 . Habson retums some of the merchandise. The selling price of the teturned mercluandise is $780 and the cost of the merchandise returned is $440. The entry or entries that Klein must make on March 15 is (aref: Multiple chase \begin{tabular}{|c|c|c|} \hline Account Title & Debit & credit \\ \hline Accounts Receivable & 780 & \\ \hline Sales Returns and Allowances & & 780 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Account Title & Debit & credit \\ \hline Accounts Receivable & 780 & \\ \hline Sales Returns and Allowances & & 780 \\ \hline Cost of Goods Sold & 440 & \\ \hline Merchandise Inventory & & 440 \\ \hline \hline \end{tabular} \begin{tabular}{|c|c|r|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Sales Returns and Allowances & 440 & \\ \hline Accounts Receivable & & 440 \\ \hline \end{tabular}