Treadwell Tire Company had net accounts receivable of $67,900 at the beginning of the year and $72,400 at the end of the year. The company's net sales revenue during the year was $876,875. What was the receivables turnover ratio for the year

c. A company accounts for changes in estimates only in the period of change, even though it affects the future periods

Explanation:

A change in the accounting assessment is an adjustment of the carrying amount or related cost of an asset or liability resulting from ensuring the future benefits and liabilities of the asset or liability. Some examples include bad debts and changes in the useful life of a property. The Company’s fiscal years end at the end of the year. As with any change in accounting assessment, it can be done in the current or future period. Changes in accounting estimates are not considered accounting errors or exceptional items