The Cash Records of Grayson Company Show the Following:1

Essay

The cash records of Grayson Company show the following:1. In February, deposits per the bank statement totaled $37,700; deposits per books $38,000; and deposits in transit at February 28 were $3,550.
2. In February cash disbursements per books were $37,500; checks clearing the bank were $37,300; and outstanding checks at February 28 were $2,500.
There were no bank debit or credit memoranda and no errors were made by either the bank or Grayson Company.
Answer the following questions:
(a) What were the deposits in transit at January 31?
(b) What were the outstanding checks at January 31?