After studying the required resources for this module, read and analyze the following scenario, then discuss the question:

Marg$$ Johnson is a staff accountant at the ToolEx, a manufacturer of tools and equipment. The company is under

pressure from investors to increase earnings and the president of the company expects the accounting department to

"make this happen." Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be

terminated.

Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares

the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The

amount is so large that it will result in a significant drop in earnings during this period. Margie's boss asks her not to make

the adjusting entry for shrinkage this period. He assures her that they will get "caught up$"$ on shrinkage in the next period,

after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him.

What should Margie do in this situation? Why?