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 $700 of supplies still remain.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, $700 worth of supplies remain, meaning $500 worth of supplies have been used. The balance in the supplies account after adjustment reflects the remaining supplies, which is $700.