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 Other revenue. In substantially all cases, we receive an initial down payment at the time the contract is signed.

Our cemetery financed receivables at December 31, 2018 and September 30, 2019 are as follows (in thousands):



	December 31, 2018			September 30, 2019
Accounts receivable, including unearned finance charges and allowance for contract cancellations of $2,405 and $2,412, respectively	$	11,676	⁽¹⁾	$	12,903	⁽¹⁾
Preneed receivables, including unearned finance charges and allowance for contract cancellations of $4,049 and $3,937, respectively	25,568		⁽²⁾	26,618		⁽²⁾
Preneed cemetery financed receivables	$	37,244		$	39,521




(1)	$1.4 million and $1.5 million of cemetery accounts receivables have been reclassified to reduce deferred preneed cemetery revenue at December 31, 2018 and September 30, 2019, respectively.
(2)	$3.1 million and $3.2 million of preneed cemetery receivables have been reclassified to reduce deferred preneed cemetery revenue at December 31, 2018 and September 30, 2019, respectively.

The unearned finance charges associated with these receivables are $4.6 million and $4.5 million at December 31, 2018 and September 30, 2019, 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 4.2% of the total receivables on recognized sales at September 30, 2019. 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 nine months ended September 30, 2019, the change in the allowance for contract cancellations is as follows (in thousands):



	September 30, 2019
Beginning balance	$	1,808
Write-offs and cancellations	(598		)
Provision	611
Ending balance	$	1,821

The aging of preneed cemetery financed receivables as of September 30, 2019 is as follows (in thousands):



	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total Financed Receivables
Recognized revenue	$	510	$	288	$	101	$	1,151	$	2,050	$	27,676	$	29,726
Deferred revenue	203		81		63		279		626		9,169		9,795
Total	$	713	$	369	$	164	$	1,430	$	2,676	$	36,845	$	39,521