On December 1, Milton Company borrowed $400,000, at 6% 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, $4,000; credit Interest Payable, $4,000. debit Interest Expense, $2,000; credit Interest Payable, $2,000. debit Interest Payable, $2,000; credit Interest Expense, $2,000. debit Interest Expense, $24,000; credit Interest Payable, $24,000. debit Interest Expense, $2,000; credit Cash, $2,000.