Carr Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of March 31 has a credit balance of $1,250, and there is no undeposited cash on hand.
(a) Assuming no errors occurred during journalizing or posting, what caused this unusual balance?
(b) Is the $1,250 credit balance in the cash account an asset, a liability, owner’s equity, a revenue, or an expense?