The missing dollar

I stumbled upon this riddle using StumbleUpon:

Three men go to a cheap motel, and the desk clerk charges them a sum of $30.00 for the night. The three of them split the cost ten dollars each. Later the manager comes over and tells the desk clerk that he overcharged the men, since the actual cost should have been $25.00. The manager gives the bellboy $5.00 and tells him to give it to the men. The bellboy, however, decides to cheat the men and pockets $2.00, giving each of the men only one dollar.

Now each man has paid $9.00 to stay for the night, and 3 x $9.00 = $27.00. The bellboy has pocketed $2.00. But $27.00 + $2.00 = $29.00. Where is the missing $1.00?

I found this riddle surprisingly difficult to solve by thinking only. I needed to put my reasoning in writing to see what was wrong.