Few tips and suggestions:
First of all: Don't forget to close the Scanner objects! (you left one unclosed)
Second of all: Your main method is highly inefficient, you are using two loops, in the first one you read and store variables, in the second one you check for a match, you can do both at the same time (I've written an alternative method for you)
Third little thing: The variable "element" is not used at all in your code, I've removed it in the answer.
And last but not least: The file "Names.txt" needs to be located (since you've only specificied it's name) in the root folder of your project, since you mention an IOException, I figure that's what's wrong with the app. If your project is called Accounts, then it's a folder called Accounts with it's source and whatever else is part of your project, make sure the file "Accounts/Names.txt" exists! and that it is in the desired format.
import java.util.*;
import java.io.*;
public class ChargeAccountModi {
public boolean sequentialSearch(double chargeNumber) throws IOException {
Scanner keyboard= new Scanner(System.in);
int index = 0;
boolean found = false;
System.out.print("Enter the Charge Account Number: " );
chargeNumber = keyboard.nextInt();
int[] tests = new int[18];
int i = 0;
File file = new File ("Names.txt");
Scanner inputFile = new Scanner(file);
while(inputFile.hasNext() && i < tests.length ) {
tests [i] = inputFile.nextInt();
i++;
}
inputFile.close();
for (index = 0 ; index < tests.length ; index ++ ) {
if (tests[index] == chargeNumber) {
found = true;
}
}
keyboard.close();
return found;
}
public boolean sequentialSearchAlternative(double chargeNumber) throws IOException {
Scanner keyboard= new Scanner(System.in);
boolean found = false;
System.out.print("Enter the Charge Account Number: " );
chargeNumber = keyboard.nextInt();
int tests = 18;
int i = 0;
File file = new File ("Names.txt");
Scanner inputFile = new Scanner(file);
while(inputFile.hasNext() && i<tests) {
if (inputFile.nextInt() == chargeNumber) {
found = true;
break;
}
i++;
}
inputFile.close();
keyboard.close();
return found;
}
public static void main(String[] args) {
double chargeNumber = 0;
ChargeAccountModi object1 = new ChargeAccountModi();
try {
System.out.println("The search result is : " + object1.sequentialSearch(chargeNumber));
} catch (Exception e) {
//Handle the exceptions here
//The most likely exceptions are:
//java.io.FileNotFoundException: Names.txt - Cannot find the file
//java.util.InputMismatchException - If you type something other than a number
e.printStackTrace();
}
}
}