Patrick Trash Haulers borrowed 40,000 on April 1, 2020. The loan had an interest rate of 12%. The principal is to be repaid on March 31, 2022. Interest payments are to be made annually. They make adjusting journal entries on the last day of each year. What amount of interest expense would they recognize on December 31,2020 ? 1.200 3.600 9,600 4,800