Fancy Inc. operates a retail store and must determine the proper December 31, 2020, year-end accrual for the following expenses:

The store leases calls for a fixed rent of $1,500 per month, payable at the beginning of the month, and additional rent equal to 8% of net sales over $250,000 per calander year, payable on January 31 of the following year. Net sales for 2020 are $850,000.

Fancy has personal property subject to a city property tax. The city's fiscal year runs from july 1 to june 30, and the tax is payable on june 30. Fancy estimates that its personal property tax will amount to $8,000 for the city's fiscal year ending june 30, 2021.

In its December 31, 2020, balnce sheet, Fancy should report accrued expenses of:

a 52,500

b 53,500

c 25,000

d 52,000