Meadows Company adheres to a policy of depositing all cash receipts in a bank ac- count and making all payments by check. The cash account as of July 31 has a credit balance of $900, 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 $900 credit balance in the cash account an asset. a liability, owner's eq- uity, a revenue. or an expense?

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