If a check correctly written and paid by the bank for $585 is incorrectly recorded in the company's books for $558, how should this error be treated on the bank reconciliation?

a) Subtract $27 from the bank's balance.

b) Subtract $27 from the book balance.

c) Subtract $27 from the bank's balance and add $45 to the book's balance.

d) Add $27 to the bank's balance.

e) Add $27 to the book balance.