Accounts Receivable

9 Months Ended

Jul. 31, 2011

Notes to Financial Statements

Accounts Receivable

NOTE   6  - ACCOUNTS RECEIVABLE:

Accounts receivable are recorded net of allowances.  The allowance for doubtful accounts represents the estimated uncollectible portion of accounts receivable.  The Company establishes the allowance for doubtful accounts based on a history of past write-offs and collections and current credit considerations.  The reserve for sales discounts represents the estimated discount that customers will take upon payment.  The reserve for other allowances represents the estimated amount of returns and slotting fees expected to be incurred by the Company from its customers.  The allowances are summarized as follows:

	July 31, 2011 (unaudited)		October  31, 2010
Allowance for doubtful accounts	$	90,078	$	90,078
Reserve for other allowances		47,000		47,000
Reserve for sales discounts		60,000		60,000
Totals	$	197,078	$	197,078