What is the GL impact when making Vendor Payments?

When making vendor payments, the correct general ledger impact reflects the process of settling accounts payable and reducing cash. The option that states "Debit A/P, Credit Checking" accurately portrays this transaction.

When a vendor payment is made, the accounts payable (A/P) balance decreases because the company is fulfilling its obligation to pay the vendor. This is recorded as a debit to A/P, which effectively reduces the liability on the balance sheet. At the same time, the company's cash account (which may include checking or other cash accounts) is credited, indicating that cash is being disbursed to complete this payment. Therefore, this entry demonstrates a reduction in both liabilities and assets, which is a fundamental component of double-entry accounting.

The other options do not accurately reflect the nature of vendor payments. For instance, charging expenses would not be appropriate unless the transaction was initially recorded incorrectly or if it involved recognizing an expense directly at the time of payment, which is not standard practice for payments of outstanding liabilities. Similarly, options involving inventory or cash in a different context are not relevant to vendor payments, as these transactions specifically address liabilities related to paying vendors.