Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-month pass for...
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Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-month pass for automatic car wash sells for $60, which entitles the customer for an unlimited number of car washes during the contract period. Squeaky Shine estimates that pass holders wash their cars equally throughout the three-month period. On December 1st, customers purchased $2,460 of the three-month passes, with usage of the passes occurring evenly throughout the contract period. Required: 1. Prepare the journal entries that Squeaky Shine would record on December 1 and on December 31, 2021, with respect to this transaction. 2. State the account titles and amounts that will be included in Squeaky Shines 2021 income statement and balance sheet.
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