On June 1, HA, Inc., has a balance of $1,000 in office supplies. During June, the company buys $500 more of the office supplies. On June 30, the company counts the supplies and finds that $200 are left unused. What will the company report on its income statement for the month of June?

Supplies expense $1,300

Office supplies $500

Office supplies $1,500

Supplies expense $500