PRENEED CEMETERY RECEIVABLES

Preneed sales of cemetery interment rights and related products and services are usually financed through interest-bearing installment sales contracts, generally with terms of up to five years with such interest income reflected as Preneed cemetery finance charges. In substantially all cases, we receive an initial down payment at the time the contract is signed. At December 31, 2016, our total financed preneed receivables were $39.0 million, of which $28.7 million and $10.3 million were for cemetery interment rights and for merchandise and services, respectively. These amounts are presented on our consolidated balance sheet as $11.4 million in Accounts receivable and $27.6 million within Preneed receivables and exclude unearned finance charges and allowance for contract cancellations. At December 31, 2015, our total financed preneed receivables were $36.5 million, of which $26.8 million and $9.7 million were for cemetery interment rights and for merchandise and services, respectively. These amounts are presented on our consolidated balance sheet as $11.2 million in Accounts receivable and $25.3 million within Preneed receivables and exclude unearned finance charges and allowance for contract cancellations. The unearned finance charges associated with these receivables was $5.2 million and $5.7 million at December 31, 2015 and 2016, respectively.

We determine an allowance for customer cancellations and refunds on contracts in which revenue has been recognized on sales of cemetery interment rights. We have a collections policy where past due notifications are sent to the customer beginning at 15 days past due and periodically thereafter until the contract is cancelled or payment is received. We reserve 100% of the receivables on contracts in which the revenue has been recognized and payments are 90 days past due or more, which was approximately 4.7% of the total receivables on recognized sales at December 31, 2016. An allowance is recorded at the date that the contract is executed and periodically adjusted thereafter based upon actual collection experience at the business level. For the years ending December 31, 2015 and 2016, the changes to the allowance for contract cancellations were as follows (in thousands):



	As of December 31,
	2015			2016
Beginning balance	$	2,140		$	1,765
Write-offs and cancellations	(1,462		)	(1,332		)
Provision	1,087			1,428
Ending balance	$	1,765		$	1,861

The aging of past due financing receivables as of December 31, 2016 was as follows (in thousands):



	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total Financing Receivables
Recognized revenue	$	674	$	356	$	233	$	1,086	$	2,349	$	26,003	$	28,352
Deferred revenue	310		112		86		316		824		9,810		10,634
Total contracts	$	984	$	468	$	319	$	1,402	$	3,173	$	35,813	$	38,986

The aging of past due financing receivables as of December 31, 2015 was as follows (in thousands):



	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total Financing Receivables
Recognized revenue	$	758	$	446	$	225	$	1,061	$	2,490	$	22,742	$	25,232
Deferred revenue	273		207		103		335		918		10,380		11,298
Total contracts	$	1,031	$	653	$	328	$	1,396	$	3,408	$	33,122	$	36,530