Table of Contents 48 Reduction of inventory quantities in 2018 resulted in liquidations of LIFO inventories carried at prevailing costs established in prior years and increased cost of sales by $168 in 2018. Inventories are summarized as follows: Bad debt expense was $163 in 2018, $70 in 2017, and $38 in 2016. Receivables are summarized as follows: The Company often receives cash payments from customers in advance of the Company’s performance for limited production run orders resulting in contract liabilities. These contract liabilities are classified in accrued expenses in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue, which is typically less than a year. The net decrease or increase in the contract liabilities is primarily driven by order activity for limited runs requiring deposits offset by the recognition of revenue and application of deposit on the receivables ledger for such activity during the period. The activity in the advanced deposits for the twelve months ended December 29, 2018, December 30, 2017, and December 31, 2016 is as follows: NOTE 4 - RECEIVABLES, NET NOTE 5 - INVENTORIES, NET Contract Balances 2018 2017 2016 Beginning contract liability $ 5,717 $ 8,212 $ 6,674 Revenue recognized from contract liabilities included in the beginning balance (5,717 ) (7,820 ) (5,894 ) Increases due to cash received, net of amounts recognized in revenue during the period 6,013 5,325 7,432 Ending contract liability $ 6,013 $ 5,717 $ 8,212 2018 2017 Customers, trade $ 40,121 $ 43,683 Other receivables 2,595 2,930 Gross receivables 42,716 46,613 Less: allowance for doubtful accounts (174) (133) Receivables, net $ 42,542 $ 46,480 2018 2017 Raw materials $ 36,875 $ 39,264 Work-in-process 20,274 24,454 Finished goods 67,085 65,172 Supplies and other 190 143 LIFO reserve (19,229 ) (15,376 ) Inventories, net $ 105,195 $ 113,657 THE DIXIE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (amounts in thousands, except per share data) (Continued)