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 $1,740 of the three-month passes, with usage of the passes occurring evenly throughout the contract period.

Required:

Prepare the journal entries that Squeaky Shine would record on December 1 and on December 31, 2024, with respect to this transaction.

State the account titles and amounts that will be included in Squeaky Shines 2024 income statement and balance sheet.