I am trying to set up NSF fees on my chart of accounts which I think would be other income and we are now paying bank fee which would be an expense? I have used 5810 with Normal balance of Credit/Account type- normal/Report type is Income statement... used 7400 for Bank fees with normal balance of Debit/account type-normal and report type as income statement. The reason I think I'm not correct is when I did my bank rec - the rec report was -0- but I had a -50.00 on GL comparison report... I am stuck at this point

I can't tell you anything about your bank rec report versus a GL report. I've never done a bank rec in software cause I rarely see them done correctly and I can do them faster manually. (And then don't have to worry about it matching my GL stuff. :-) But you also never said what software you're using, and if you'd provide that info, maybe someone else can help with that part.

As for an NSF charge, assuming you're using that name correctly - it's not income. That's when you deposit a check into the bank that you've received from someone else, it bounces at their bank, comes back to your bank and they take the deposit back out. i.e. I write you a check and my check bounces, so your bank is going to take that back out of your account. Meaning you're going to come back on me about it cause I still owe it to you. Which is a receivable. If you're charged a fee for that by your bank, that's an expense. You can call it what you want, but I generally stick stuff like that into Bank Fees or Miscellaneous Fees or some such.

If you're using the term incorrectly and you mean an overdraft, that means that you are the one writing checks you don't have enough money for -- i.e. bouncing checks. That would depend on what the bank does about it. If they send them through anyway, you don't need to do anything. If they actually bounce them and add them back into your account, then it needs credited to whatever account you originally debited. (i.e. if you wrote a check for utilities expense, it would have to be credited back out of there until you re-write the check.)

As for fees, that's just a plain old expense and nothing special. You could include that with your other bank charges.

$7400 is some pretty hefty fees. What have you been up to? (or is that like 7400 yen?)