4. Accounts Receivable

Accounts receivable consists of the following:

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 conditions. Actual credit losses could differ from those estimates. We have elected to use the practical expedient under ASC Topic 326, Financial Instruments – Credit Losses, which allows us to assume that current conditions as of the balance sheet date do not change over the expected life of the receivables, which is generally ninety days or less.

Activity in the allowance for credit losses for the nine months ended August 29, 2026 and August 30, 2025 was as follows:

Substantially all of the accounts receivable written off against the reserve during the three and nine months ended August 29, 2026 and August 30, 2025 originated during our fiscal years ended November 29, 2025 and November 30, 2024, respectively.

Because the expected life of our trade receivables is short-term, we believe that the carrying value of our net accounts receivable approximates fair value.