Note 4 - Accounts Receivable

3 Months Ended

Mar. 01, 2025

Notes to Financial Statements

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

4. Accounts Receivable

Accounts receivable consists of the following:

	March 1, 2025			November 30, 2024
Gross accounts receivable	$	14,715		$	14,278
Allowance for doubtful accounts		(497	)		(1,097	)
Accounts receivable, net	$	14,218		$	13,181

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 collectability 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 March 1, 2025 was as follows:

	2025
Balance at November 30, 2024	$	1,097
Additions charged to expense		18
Write-offs against allowance		(618	)
Balance at March 1, 2025	$	497

Substantially all of the accounts receivable written off against the reserve during the three months ended March 1, 2025 originated during fiscal 2024.

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.