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Note 6 - Product Warranties
 12 Months Ended
Oct. 31, 2023
Notes to Financial Statements  
Product Warranty Disclosure [Text Block]

(6)

Product Warranties

 

The Company generally warrants its products against certain manufacturing and other defects in material and workmanship. These product warranties are provided for specific periods of time and are applicable assuming the product has not been subjected to misuse, improper installation, negligent handling or shipping damage. As of October 31, 2023 and 2022, the Company’s accrual for estimated product warranty claims totaled $80,000 and $75,000, respectively, and is included in accounts payable and accrued expenses. Warranty claims expense includes the costs to investigate claims and potential claims, and the costs to replace and/or repair product pursuant to claims, which can include claims not deemed valid by the Company. The accrued product warranty costs are based primarily on historical experience of actual warranty claims and costs as well as current information with respect to potential warranty claims and costs. Warranty claims expense for the years ended October 31, 2023, 2022 and 2021 totaled $89,548, $52,465 and $55,592, respectively.

 

The following table summarizes the changes in the Company’s accrual for product warranties during the fiscal years ended October 31, 2023 and 2022:

 

   

Years ended October 31,

  
   

2023

    

2022

  

Balance at beginning of year

   $ 75,000     $ 75,000  

Liabilities accrued for warranties issued during the year

     114,577       97,501  

Warranty claims paid during the period

     (84,548 )     (52,465 )

Changes in liability for pre-existing warranties during the year

     (25,029 )     (45,036 )

Balance at end of year

   $ 80,000     $ 75,000  

 

 

Optical Cable Corporation (OCC)