Kemp Co. must determine the December 31, Year 1, year-end accruals for advertising and rent expenses. A $500 advertising bill was received January 7, Year 2, comprising costs of $375 for advertisements in December Year 1 issues, and $125 for advertisements in January Year 2 issues of the newspaper.A store lease, effective December 16, Year 0, calls for fixed rent of $1,200 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over $300,000 per calendar year is payable on January 31 of the following year. Net sales for Year 1 were $550,000.In its December 31, Year 1, balance sheet, Kemp should report accrued liabilities of: