Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-

Question

Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-month pass for automatic car wash sells for $75, 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 purchases of the passes occurring evenly throughout December.

Prepare the journal entries that Squeaky Shine would record on December 1 and on December 31, 2016, with respect to this transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

Record the cash transaction on Dec. 1 2016

Record the cash transaction on Dec. 31 2016

Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-month pass for automatic car wash sells for $75, 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 purchases of the passes occurring evenly throughout December.

Explanation / Answer

Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-

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