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Receivables and Allowance for Doubtful Accounts (Notes)
 12 Months Ended
Dec. 31, 2022
Receivables and Allowance for Doubtful Accounts [Abstract]  
Receivables and Allowance for Doubtful Accounts Receivables and Allowance for Doubtful Accounts
Installment sales receivables consist primarily of receivables due from customers for the sale of merchandise in our retail installment stores. Installment sales receivables associated with the sale of merchandise at our Get It Now and Home Choice stores generally consist of the sales price of the merchandise purchased and any additional fees for services the customer has chosen, less the customer’s down payment. No interest is accrued and interest income is recognized each time a customer makes a payment, generally on a monthly basis. Interest paid on installment agreements for the twelve months ended December 31, 2022, 2021 and 2020 was $12.1 million, $12.2 million, and $11.5 million, respectively.
Trade and notes receivables consist of amounts due from our lease-to-own customers for renewal and uncollected rental payments, adjusted for the probability of collection based on our assessment of historical collection rates and length of time the receivable is past due; amounts owed from our franchisees for inventory purchases, earned royalties and other obligations; and
other corporate related receivables. Credit is extended to franchisees based on an evaluation of each franchisee’s financial condition and collateral is generally not required. Trade receivables are generally due within 30 days.
Receivables consist of the following:
 December 31,
(In thousands)20222021
Installment sales receivable$69,550 $66,276 
Trade and notes receivables(1)
55,529 68,581 
Total receivables125,079 134,857 
Less allowance for doubtful accounts(2)
(13,214)(8,479)
Total receivables, net of allowance for doubtful accounts$111,865 $126,378 
(1) Trade and notes receivables includes accrued revenue, adjusted for the probability of collection, related to our lease-to-own agreements of $28.7 million and $44.8 million at December 31, 2022 and 2021.
(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.
We have established an allowance for doubtful accounts for our installment notes receivable. Our policy for determining the allowance is primarily based on historical loss experience, as well as the results of management’s review and analysis of the payment and collection of the installment notes receivable within the previous year. We believe our allowance is adequate to absorb all expected losses. Our policy is to charge off installment notes receivable that are 120 days or more past due. Charge-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previously charged off balances are applied as an increase to the allowance for doubtful accounts.
The allowance for our Franchising trade and notes receivables is determined by considering a number of factors, including the length of time receivables are past due, previous loss history, the franchisee’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. Trade receivables that are more than 90 days past due are either written-off or fully reserved in our allowance for doubtful accounts. Payments subsequently received on such receivables are credited to the allowance for doubtful accounts.
The allowance for doubtful accounts related to Franchising trade and notes receivables was $1.2 million and $0.9 million, and the allowance for doubtful accounts related to installment sales receivables was $12.0 million and $7.6 million at December 31, 2022 and 2021, respectively.
Changes in our allowance for doubtful accounts are as follows:
 Year Ended December 31,
(In thousands)202220212020
Beginning allowance for doubtful accounts$8,479 $8,047 $5,601 
Estimated uncollectible payments and returns(1)
24,658 14,397 14,636 
Accounts written off, net of recoveries(19,923)(13,965)(12,190)
Ending allowance for doubtful accounts$13,214 $8,479 $8,047 
(1) Uncollectible installment payments, franchisee obligations, and other corporate receivables are recognized in other store operating expenses in our consolidated financial statements.