Note 4 - Accounts Receivable

3 Months Ended

Feb. 26, 2022

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. Accounts Receivable

Accounts receivable consists of the following:

	February 26, 2022			November 27, 2021
Gross accounts receivable	$	26,317		$	21,134
Allowance for credit losses		(714	)		(567	)
Accounts receivable, net	$	25,603		$	20,567

We maintain an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments. The allowance for credit losses is based on a review of specifically identified accounts in addition to an overall aging analysis which is applied to accounts pooled on the basis of similar risk characteristics. Judgments are made with respect to the collectibility of accounts receivable within each pool based on historical experience, current payment practices and current economic trends based on our expectations over the expected life of the receivables, which is generally ninety days or less. Actual credit losses could differ from those estimates.

Activity in the allowance for credit losses for the three months ended February 26, 2022 was as follows:

Balance at November 27, 2021	$	567
Additions charged to expense		147
Write-offs against allowance		-
Balance at February 26, 2022	$	714

We believe that the carrying value of our net accounts receivable approximates fair value. The inputs into these fair value estimates reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures. See Note 3.