The first is the easiest. Go to the properties of the database and then options. Change the recovery mode to simple. In doing so you can only restore to the point in time that a backup has been taken and the logs will not grow over time.
The second is to setup a maintenance plan on the database to back it up regularly. When set to full recovery you can restore your database to any point in time from the last backup until "now". Usually this is a overkill for the AMC but to truncate the logs you would do a full backup once a day or weekly and then do transactional backups every hour or every other hour depending on how busy the database is and how fast the transaction logs grow. Optionally you can setup incremental backups where you do a weekly full, daily incremental, and hourly transactional.
Thanks for your reply.
Regarding option 1, our backup is already set to simple. Is there any other action that can be taken on this option?