At the beginning of December, Global Corporation had $2,000 in supplies on hand. The corporation purchased supplies totaling $3,000 during the month. However, at the end of the month, the supplies balance had decreased to $800. What should be the appropriate month-end adjusting entry?

To record the appropriate month-end adjusting entry for supplies, Global Corporation needs to determine the total amount of supplies used during the month. At the start of December, there were $2,000 in supplies on hand, and an additional $3,000 was purchased during the month. This means the total amount available for use during the month was $2,000 + $3,000 = $5,000.

At the end of the month, the balance of supplies on hand is $800. To determine how much was used, you need to subtract the ending balance of supplies from the total supplies available, which is $5,000 - $800 = $4,200.

Therefore, $4,200 worth of supplies has been used during December.

The adjusting entry to record the supplies expense would be:

Debit Supplies Expense: $4,200 Credit Supplies: $4,200

This entry increases the Supplies Expense account, which reduces net income on the income statement since supplies are considered a cost of doing business. The Credit to Supplies decreases the balance of supplies on hand, reflecting the reduced amount now available for use.