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 are comprised of the following at December 31, 2018 and December 31, 2019 (in thousands):



	December 31, 2018		December 31, 2019
Cemetery interment rights	$	27,728	$	31,366
Cemetery merchandise and services	9,516		9,950
Cemetery financed receivables	$	37,244	$	41,316

Our cemetery financed receivables presented on our Consolidated Balance Sheet at December 31, 2018 and December 31, 2019 are as follows (in thousands):



	December 31, 2018		December 31, 2019
Accounts receivable, including unearned finance charges and allowance for contract cancellations of $2,405 and $2,458, respectively	$	11,676	$	13,905
Preneed receivables, including unearned finance charges and allowance for contract cancellations of $4,049 and $3,980, respectively	25,568		27,411
Cemetery financed receivables	$	37,244	$	41,316

The unearned finance charges associated with these receivables were $4.6 million and $4.5 million at December 31, 2018 and 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 approximately 4.4% of the total receivables on recognized sales at December 31, 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 years ending December 31, 2018 and 2019, the change in the allowance for contract cancellations is as follows (in thousands):



	As of December 31,
	2018			2019
Beginning balance	$	2,019		$	1,808
Write-offs and cancellations	(1,357		)	(733		)
Provision	1,146			841
Ending balance	$	1,808		$	1,916

The aging of past due financing receivables as of December 31, 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 Financing Receivables
Recognized revenue	$	745	$	392	$	148	$	1,209	$	2,494	$	28,382	$	30,876
Deferred revenue	219		121		147		302		789		9,651		10,440
Total contracts	$	964	$	513	$	295	$	1,511	$	3,283	$	38,033	$	41,316

The aging of past due financing receivables as of December 31, 2018 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 Financing Receivables
Recognized revenue	$	642	$	395	$	143	$	1,139	$	2,319	$	25,289	$	27,608
Deferred revenue	274		165		53		289		781		8,855		9,636
Total contracts	$	916	$	560	$	196	$	1,428	$	3,100	$	34,144	$	37,244