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Other Financial Statement Information
 12 Months Ended
Dec. 31, 2021
Other Financial Information [Abstract]  
Other Financial Statement Information Other Financial Statement Information
Accounts Receivable
Changes in the allowance consisted of the following (in thousands):
Year Ended December 31,
202120202019
Beginning balance$5,256 $2,461 $1,939 
Add: amounts recognized as a reduction of revenue6,610 6,493 2,996 
(Less) add: bad debt expense recognized in general and administrative expense(279)2,170 — 
Less: write-offs, net of recoveries(7,527)(5,868)(2,474)
Ending balance$4,060 $5,256 $2,461 
The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents an allowance relating to receivables from partners that are no longer considered collectible.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
As of December 31,
20212020
Prepaid expenses$10,957 $7,177 
Deferred cost of revenue1,819 1,967 
Capitalized cloud computing development costs867 — 
Income tax receivable831 716 
Other current assets2,115 676 
Total prepaid expenses and other current assets$16,589 $10,536 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As December 31,
20212020
Accrued payroll and related expenses$21,858 $16,135 
Accrued vendor payables18,239 10,854 
Derivative liabilities and hybrid debt— 5,131 
Sales allowances4,862 4,856 
Accrued sales, use and business taxes2,678 1,789 
Other3,180 2,263 
Total accrued expenses and other current liabilities$50,817 $41,028 
Changes in sales allowances relating to charge-backs, sales credits and refunds consisted of the following (in thousands):
Year Ended December 31,
202120202019
Beginning balance$4,856 $4,651 $4,483 
Add: increase in sales allowances7,998 9,976 10,387 
Less: utilization of reserves(7,992)(9,771)(10,219)
Ending balance$4,862 $4,856 $4,651 
Depreciation and Amortization
Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$6,430 $8,324 $6,773 
Sales and marketing6,017 6,913 6,469 
Technology and development2,361 2,800 1,055 
General and administrative1,878 2,060 2,093 
Total depreciation and amortization expense$16,686 $20,097 $16,390 
Deferred revenue
Deferred revenue as of December 31, 2021 and 2020 was $147.9 million and $130.1 million, respectively. Revenue recognized in 2021, 2020 and 2019 that was included in deferred revenue at the beginning of the year was $127.6 million, $103.5 million and $99.8 million, respectively. We expect to recognize substantially all of the deferred revenue as of December 31, 2021 as revenue in 2022.
We have omitted disclosure on the transaction price allocated to remaining performance obligations and estimated timing of revenue recognition as our contracts with customers that have a duration of more than one year are immaterial.