Final answer:
The journal entry for a bank overdraft fee when a company writes a check without sufficient funds would be to debit the Bank Service Charges account and credit the Cash account.
Step-by-step explanation:
When a company writes a check but does not have enough money in their account to cover the transaction, the bank may charge an overdraft fee. This would require a journal entry in the company's accounting records to reflect the bank fee. The entry would debit the Bank Service Charges expense account and credit the Cash account, increasing expenses and decreasing cash, respectively. An example journal entry would be To use a check as a form of payment for goods and services, you need to have sufficient funds in your account to cover the amount of the check. When a store accepts a check, they deposit it into their bank, which then processes the payment and transfers the money from the payer's account to the merchant's account. If the account does not have enough funds, resulting in an overdraft, the bank may allow the transaction but assess a charge for the negative balance.