TIMED TASK!

On January 1, Diego borrowed P20,000 from Cardo. On February 1, the former borrowed another P10,000 from the latter, evidenced by an interest bearing promissory note. Both debts are now due. Upon demand by Cardo, Diego paid P6,000 without designating the liability on which it would be applied. How will the P6,000 be applied? It will be considered as payment for both debts, in the ratio of 2:1 respectively It will be considered as payment for both debts, in the ratio of 1:1 It will be considered as payment for the January 1 debt only It will be considered as payment for the February 1 debt only