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Taking Inventory for Personal Use

by | Dec 1, 2023 | Posted Questions

Taking Inventory for Personal Use

Hart Nance and Jason Symington operate gift boutiques in
shopping malls. The partners split profits and losses equally, and each takes
an annual drawing 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.

How do you feel Symington should have recorded these
transactions? Why? What are the ethical implications of Symington’s actions?
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