Bank Service Charge Expense

 

 

Bank Service ChargeĀ Expense

Bank service charge is a monthly fee charged by the bank for the use of its services. This fee is often charged by the bank only when the average monthly balance in a checking account falls below a specified amount. The bank sends a debit memorandum explaining the charge noted on the bank statement. This fee or expense is identified on the bank statement by a symbol such as SC. In order to record such transactions businesses post a journal entry in its books of accounts in which they debit bank service charges and credit bank account.

 

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