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Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance: ...

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Accounting

Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance:

Cash in bankchecking account $ 38,500
U.S. Treasury bills (mature in 60 days)* 6,000
Cash on hand (currency and coins) 2,950
U.S. Treasury bills (mature in six months)* 26,000
Undeposited customer checks 3,440

*Purchased on 11/30/21 Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet.

2. Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $650 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30.

3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used.

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