Hart Nance and Jason Symington operate gift boutiques inshopping malls. The part

Question

Hart Nance and Jason Symington operate gift boutiques inshopping malls. The partners split profits and lossesequally, and each takes an annual drawing of $80,000.  Inpreparing for his daughter's wedding, Symington took inventory thatcost $10,000. He recorded the transation as follows: Cost of Goods Sold debited $10,000 Inventory credited $10,000 How should Symington have recorded this transaction? Anddiscuss ethical aspects of Symington's action. Hart Nance and Jason Symington operate gift boutiques inshopping malls. The partners split profits and lossesequally, and each takes an annual drawing of $80,000.  Inpreparing for his daughter's wedding, Symington took inventory thatcost $10,000. He recorded the transation as follows: Cost of Goods Sold debited $10,000 Inventory credited $10,000 How should Symington have recorded this transaction? Anddiscuss ethical aspects of Symington's action.

Explanation / Answer

S took the inventory solely forhis personal use. He however accounted it as asale. This shows a gross misrepresentation offacts. Proper business ethics call for accountingthe above transaction as "Drawings"

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