Which of the following should be reported as a change in accounting estimate?
A) Change in the reported beginning inventory amount due to a discovery of a bookkeeping error
B) Change from the completed-contract method to the percentage-of- completion method for revenue recognition on long-term construction contracts
C) Increase in the rate applied to net credit sales from 1 percent to 1-1/2 percent in determining losses from uncollectible receivables
D) Change made to comply with a new FASB pronouncement

Question

Quizplus · Accepted Answer

An increase in the rate applied to net credit sales for determining losses from uncollectible receivables is a change in accounting estimate. This reflects a revision based on new information or new experience and does not relate to errors or changes in accounting principles.

Which of the Following Should Be Reported as a Change