ABC Company adjusts its accounts at the end of each month. The following information is provided in order to prepare the adjusting entries at October 31: (1) A one-year bank loan of $360,000 at an annual interest rate of 12% had been obtained on October 1. (2) On October 1 rent on the office building had been paid for 12 months. Monthly rent was $2,160. (3) Fees of $2,340 were earned during the month for clients who had paid in advance. What amount of interest expense has accrued on the bank loan as of October 31? Select one: a.$3,600 b.$2,400 c.$4,200 d.$3,000