Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual withdrawal of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter?s wedding, Symington took inventory that cost $10,000. He recorded the transaction as follows: debited Cost of Goods Sold for $10,000 and credited Merchandise Inventory for $10,000
1. How should Symington have recorded this transaction?
2. Discuss the ethical aspects of Symington?s action.