The bank notifies the company of fees for the month already taken out of the company's bank account.The transaction should be recorded as:

Question

Quizplus · Accepted Answer

The bank fees were already taken out of the company's bank account, which means that cash was reduced. Therefore, a debit should be made to Bank charges (an expense account) and a credit to Cash. No payable account is involved in this transaction.

The Bank Notifies the Company of Fees for the Month