On June 1,Green Pea,Inc.purchased $1,200 worth of supplies on account.Prior to the purchase,the balance in the supplies account was $0.On December 31,the fiscal year-end for Green Pea,it is determined that $500 of supplies have been used up.What is the balance in the supplies account after adjustment?

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The initial purchase of supplies was $1,200. By the end of the fiscal year, $500 worth of supplies were used, leaving $700 worth of supplies still on hand. Therefore, the balance in the supplies account after adjustment is $700.