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ACCOUNTS RECEIVABLE, NET
 12 Months Ended
Dec. 31, 2021
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
ACCOUNTS RECEIVABLE, NET ACCOUNTS RECEIVABLE, NET
Accounts receivable consists of the following as of December 31,
20212020
Contracts in transit$9,141 $— 
Trade receivables20,061 8,859 
Factory receivables (1)
4,003 — 
Finance receivables (2)
7,622 2,118 
40,827 10,977 
Less: allowance for doubtful accounts661 1,569 
$40,166 $9,408 

(1) Factory receivables represents amounts due primarily from manufacturer for holdbacks, rebates, co-op advertising, warranty and supplies returns.
(2) Finance receivables originated in connection with the Company’s vehicle sales.

The allowance for doubtful accounts was approximately $661 and $1,569 as of December 31, 2021 and 2020, respectively.

Finance receivables are stated net of allowance for doubtful accounts. The Company uses the allowance method to account for uncollectible finance receivables. The allowance for doubtful accounts is increased by charges to bad debt expense and decreased by actual write-offs (net of recoveries). A receivables is written off when the Company determines it is uncollectible. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past collection experience, knowledge of the customer, and aging of the receivables. During the years ended December 31, 2021 and 2020, management wrote of $76 and $296, respectively, of finance receivables considered to be uncollectible.