Brain teaser: Where is the remaining $1?

Here's the problem: Three friends go to a restaurant for a meal. The bill is $75, and each person contributes $25.

The waiter brought the bill and money to the cashier. Taking advantage of a restaurant promotion, the cashier reduced the bill by $5 and asked the waiter to return the $5 change to the customer.

The waiter was confused: How to divide $5 among three people? He decided to keep $2 for himself and give each of the customers $1.

The question is: Initially, each person contributed $25. Now, they are given back $1, meaning each person contributed $24. All three people contributed $24, so: 24 x 3 = $72. In addition, there is $2 in the waiter's pocket. Total: $72 + $2 = $74

But the group of customers initially paid $75. So where did the other $1 go?