The app will help you analyze a bad debts problem using the allowance method. Using the data from a homework problem, you input the changes in accounts receivable during the period (sales, collections, and write-offs) and the changes in the allowance (write-offs). Then, input either the % of accounts receivable you want for the allowance balance or the actual amount you want for the allowance balance, and the app will calculate the bad debts expense and the net realizable value of accounts receivable.