Find how should mr wrong have recorded the transaction

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Reference no: EM132599228

You are an accounting student taking a class in accounting. Your professor has given you an assignment for the weekend. He wants you to look at each ethical scenario listed below and answer the questions related to that scenario.

Mr. Right and Mr. Wrong own an antique store in a partnership. They share profits and losses equally and receive an annual salary of $50,000, as per the partnership agreement. Mr. Right travels the country buying antiques. Mr. Wrong manages the store. From time to time, they use some of the small items from the store merchandise for personal use. Mr. Wrong's daughter is getting married, and she loves an antique piece that costs $5,000.

Mr. Wrong makes the following entry on the books to record the transaction:

Debit Credit

Cost of goods sold$5,000

Inventory $5,000

Question 1: How should Mr. Wrong have recorded the transaction?

Question 2: What are the ethical aspects of Mr. Wrong's action?

Reference no: EM132599228

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