For each of the following revenue streams, list the nature of the performance obligation and when Amazon would recognize revenue for that performance obligation.

Performance

When Revenue

Obligation

is Recognized

a.

Online sale of merchandise owned by Amazon

Answer Collect customer payment Deliver good(s) to customer Provide specified service take customer order

AnswerAs the service is performedOver specified periodWhen customer order is placedWhen customer takes physical possession of good(s)When revenue is earned

b.

Online sale of merchandise owned by third parties

AnswerCollect customer paymentDeliver good(s) to customerProvide specified serviceTake customer order

AnswerAs the service is performedOver specified periodWhen customer order is placedWhen customer takes physical possession of good(s)When revenue is earned

c.

Sale of a Kindle ereader

Deliver good(s) to customer

AnswerAs the service is performedOver specified periodWhen customer order is placedWhen customer takes physical possession of good(s)When revenue is earned

Provide specified service

AnswerAs the service is performedOver specified periodWhen customer order is placedWhen customer takes physical possession of good(s)When revenue is earned

d.

Collecting cash for an Amazon Prime membership

AnswerCollect customer paymentDeliver good(s) to customerProvide specified serviceTake customer order

AnswerAs the service is performedOver specified periodWhen customer order is placedWhen customer takes physical possession of good(s)When revenue is earned

e.

Sale of media content such as a movie available for download

AnswerCollect customer paymentDeliver good(s) to customerProvide specified serviceTake customer order

AnswerAs the service is performedOver specified periodWhen customer order is placedWhen customer takes physical possession of good(s)When revenue is earned