Receivables and Allowance for Doubtful Accounts (Tables)

9 Months Ended

Sep. 30, 2023

Receivables and Allowance for Doubtful Accounts [Abstract]

Receivables

Receivables consist of the following:

(in thousands)	September 30, 2023		December 31, 2022
Installment sales receivables	$	62,236	$	69,550
Trade and notes receivables(1)	55,656		55,529
Total receivables	117,892		125,079
Less allowance for doubtful accounts(2)	(13,120)		(13,214)
Total receivables, net of allowance for doubtful accounts	$	104,772	$	111,865

(1) Trade and notes receivables includes accrued revenue, adjusted for the probability of collection, related to our lease-to-own agreements of $29.9 million and $28.7 million at September 30, 2023 and December 31, 2022, respectively.

(2) Lease receivables are accrued on a net basis, adjusted for the probability of collection based on our assessment of historical collection rates, as described above. Therefore, we do not maintain a separate allowance for doubtful accounts related to our lease receivables.

Changes in Allowance for Doubtful Accounts

Changes in our allowance for doubtful accounts are as follows:

(in thousands)	September 30, 2023
Beginning allowance for doubtful accounts	$	13,214
Bad debt expense(1)	17,533
Accounts written off, net of recoveries	(17,627)
Ending allowance for doubtful accounts	$	13,120

(1) Uncollectible installment payments, franchisee obligations, and other corporate receivables are recognized in other store operating expenses in our condensed consolidated financial statements.