Kemp Co$.$ must determine the December $31,20$X$2,$ year$-$end accruals for advertising and rent expenses. A bill for $$500$ in advertising expenses was received January $7,20$X$3,$ comprising costs of $$375$ for advertisements in December $20$X$2$ issues, and $$125$ for advertisements in January $20$X$3$ issues of the newspaper.

A store lease, effective December $16,20$X$1,$ 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 $20$X$2$ were $$550,000.$

In its December $31,20$X$2$ balance sheet, Kemp should report accrued liabilities of

a$.$ $$12,875$

b$.$ $$13,000$

c$.$ $$13,100$

d$.$ $$13,475$