Final answer:
When a check is returned due to nonsufficient funds, the bank will mark it on the bank statement and may charge an overdraft fee, potentially resulting in a negative balance.
Step-by-step explanation:
When your company issues a check that results in nonsufficient funds (NSF), the bank usually returns the check and notes it on your bank statement.
Depending on the bank's policy and the account agreement, the bank will likely charge your account an overdraft fee.
The NSF check will not be paid, and your account may reflect a negative balance if the fee, combined with other transactions, exceeds the account's available balance.
It's important to promptly address a returned check to avoid additional fees or damage to your company's financial reputation.