If a check correctly written and paid by the bank for $746 is incorrectly recorded in the company's books for $764, how should this error be treated on the bank reconciliation?

Multiple Choice

• Subtract $18 from the book balance.

• Add $18 to the bank's balance.

• Add $18 to the book balance.

• Subtract $18 from the bank's balance.

• Subtract $18 from the bank's balance and add $45 to the book's balance.