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Preneed Cemetery Receivables
12 Months Ended
Dec. 31, 2017
Preneed Cemetery Receivables [Abstract]  
PRENEED CEMETERY RECEIVABLES
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. 
Total financed preneed cemetery receivables were comprised of the following at December 31, 2016 and December 31, 2017 (in thousands):
 
December 31, 2016
 
December 31, 2017
Cemetery interment rights
$
28,687

 
$
29,625

Cemetery merchandise and services
10,299

 
10,849

Preneed cemetery receivables
$
38,986

 
$
40,474

These amounts are presented on our Consolidated Balance Sheets at December 31, 2016 and December 31, 2017 as follows (in thousands):
 
December 31, 2016
 
December 31, 2017
Accounts receivable, excluding unearned finance charges and allowance for contract cancellations of $2,622 and $2,779, respectively
$
11,380

 
$
11,843

Preneed receivables, excluding unearned finance charges and allowance for contract cancellations of $4,983 and $4,922, respectively
27,606

 
28,631

Preneed cemetery receivables
$
38,986

 
$
40,474


The unearned finance charges associated with these receivables were $5.7 million at both December 31, 2016 and 2017.
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 4.9% of the total receivables on recognized sales at December 31, 2017. 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, 2016 and 2017, the change in the allowance for contract cancellations was as follows (in thousands): 
 
As of December 31,
 
2016
 
2017
Beginning balance
$
1,765

 
$
1,861

Write-offs and cancellations
(1,332
)
 
(1,298
)
Provision
1,428

 
1,456

Ending balance
$
1,861

 
$
2,019


The aging of past due financing receivables as of December 31, 2017 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
$
1,140

 
$
530

 
$
155

 
$
1,301

 
$
3,126

 
$
26,449

 
$
29,575

Deferred revenue
380

 
171

 
63

 
392

 
1,006

 
9,893

 
10,899

Total contracts
$
1,520

 
$
701

 
$
218

 
$
1,693

 
$
4,132

 
$
36,342

 
$
40,474

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