Which of the following is an example of a change in accounting estimate?
A) Switching from straight-line to the declining balance method of depreciation.
B) Using 3% for the allowance for bad debts, instead of 1% as stated in the company's procedures manual.
C) Using 5% for the allowance for bad debts because of the increased possibility of bankruptcy by customers.
D) Changing from weighted average to the first-in, first-out method of inventory valuation.
Correct Answer:
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