Answer
Sheryl Conan should use the allowance method to disclose the decline in market value and avoid distorting cost of goods sold.
Work Step by Step
However, she faces an ethical dilemma if Wright will not accept the method. She should consider various alternatives including the extremes of simply accepting her boss’s decision to quitting if Wright will not change his mind. Conan should assess the consequences of each possible alternative and weigh them carefully before she decides what to do.
