You can change the collation by using SSMS.
Right click on database, click on properties. click on options on the left hand pane. Select the collation from the drop down list.
you can alternatively use the script
ALTER DATABASE <<db_name>>
COLLATE <<collation_name>>example:
ALTER DATABASE TEST_DATABASE
COLLATE SQL_Latin1_General_CP1_CI_AS
it will be better if you change the database to single user mode before changing the collation. You can use the scripts given below for that
ALTER DATABASE <<db_name>> SET SINGLE_USER WITH NO_WAIT
EXEC SP_DBOPTION ‘<<db_name>>’,’SINGLE USER’,’TRUE’
Awesome SQL 
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