Interpreting Revenue Recognition Disclosure for Multi-channel Retailer Amazon.com reports the following in footnotes to its 2018 financial statements. We serve consumers through our online and physical stores and focus on selection, price, and convenience. We design our stores to enable hundreds of millions of unique products to be sold by us and by third parties across dozens of product categories. Customers access our offerings through our websites, mobile apps, Alexa, and physically visiting our stores. We also manufacture and sell electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo devices, and we develop and produce media content. In addition, we offer Amazon Prime, a membership program that includes unlimited free shipping on over 100 million items, access to unlimited streaming of thousands of movies and TV episodes, and other benefits. 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 Obligation a. Online sale of merchandise owned by Amazon Deliver good(s) to customer b. Online sale of merchandise owned by third parties Take customer order C. Sale of a Kindle e-reader Deliver good(s) to customer Provide specified service d. Collecting cash for an Amazon Prime membership Collect customer payment e. Sale of media content such as a movie available for download Provide specified service When Revenue is Recognized When customer order is placed When customer takes physical possession of good(s) As the service is performed As the service is performed 2 When revenue is earned Over specified period Deliver good(s) to customer Collect customer payment Deliver good(s) to customer Provide specified service Take customer order When customer order is placed As the service is performed Over specified period When customer order is placed When customer takes physical possession of good(s) When revenue is earned