Use the financial information below to answer the following questions. Lululemon Athletica is principally a designer, distributor, and retailer of healthy lifestyle inspired athletic apparel and accessories. Below is the company's partial balance sheet and income statement: lululemon athletica inc. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) January 31, 2021 February 2, 2020 ASSETS Current assets Cash and cash equivalents Accounts receivable Inventories Prepaid and receivable income taxes Prepaid expenses and other current assets Property and equipment, net Right-of-use lease assets Goodwill Intangible assets, net Deferred income tax assets Other non-current assets $ 1,150,517 $ 62,399 1,093,505 40,219 647,230 139,126 518,513 85.159 125,107 70,542 2,124,379 1,807,938 745,687 671,693 734,835 689,664 386,877 24,182 80,080 241 6,731 31,435 106,626 56,201 $ 4,185,215 $ 3,281,354 The company provided the following explanation in their 2020 annual report: Accounts receivable Accounts receivable primarily arise out of duty receivables, sales to wholesale accounts, and license and supply arrangements. The allowance for doubtful accounts represents management's best estimate of probable credit losses in accounts receivable. Receivables are written off against the allowance when management believes that the amount receivable will not be recovered. The Company uses percentage of revenue to estimate its allowance for bad debt. During fiscal years 2020 and 2019, the Company recorded bad debt expense of $22,000 and $20,000 (in thousands), respectively. The Company Allowance for bad debt was $10,248 and $15,011 (in thousands), in fiscal years 2020 and 2019 respectively. The company did not have any recovery of its receivables write-offs in 2020 and 2019.