Kemp Co. must determine the December 31, year 2 yearend accruals for advertising and rent expenses. A $500 advertising bill was received January 7, year 3, comprising costs of $375 for advertisements in December year 2 issues, and $125 for advertisements in January year 3 issues of the newspaper. A store lease, effective December 16, year 1, 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 2 were $550,000. In its December 31, year 2 balance sheet, Kemp should report accrued liabilities of