How to report incorrect odometer on title transfer

How to report incorrect odometer on title transfer?

A 01 Honda was purchased in 01. A retail store tried to install an alarm in 2001, but instead shorted out the electrical system. The car was taken to a car dealership and the electronic circuit boards were replaced. When the car was taken in, it had approx. 240 miles, but when picked up the odometer showed 0. How is this reported for California DMV title transfer exactly to follow the legal requirements?
There is a section of the title that says, "The odometer now reads" ..... "and to the best of my knowledge reflects the actual mileage unless one of the following statements is checked."
"Warning"..."Odometer is not the actual mileage"
So should the mileage from the odometer be written down and then check the box and write in an explanation of the mileage being under by 240miles??? Does anything else need to be filled out or reported to DMV the carplace that messed this up etc.?
Thanks for reading this.