RECEIVABLES-CASH NET REALIZABLE VALUE Read the below snippets from Amazon's 2019 annual report and answer the two questions below. 1. How much is owed from customers at the end of 2019? 2. How much does Amazon expect to collect from customers at the end of 2019? AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 2018 ASSETS $ Current assets Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets 31.750 $ 9.500 17.174 16,677 75.101 61.797 36,092 18.929 20.497 20,816 96.334 72,705 25.141 14,754 16.314 225.248 14.548 11.202 162.648 $ $ Accounts Receivable, Net and Other Included in "Accounts receivable, net and other" on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2018 and 2019. customer receivables, net, were $9.4 billion and $12.6 billion, vendor receivables, net, were $3.2 billion and $4.2 billion, and seller receivables, net, were 5710 million and $863 million Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory We estimate losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for doubtful accounts was $348 million, $495 million, and $718 million as of December 31, 2017, 2018, and 2019. Additions to the allowance were $626 million, 5878 million, and $1.0 billion, and deductions to the allowance were $515 million, 5731 million, and $793 million in 2017.2018, and 2019. ACCT 200 FUNDAMENTALS OF FINANCIAL ACCOUNTING RECEIVABLES & INTERNAL CONTOLS ACTIVITY | PAGE 4 RECEIVABLES-CASH NET REALIZABLE VALUE Read the below snippets from Amazon's 2019 annual report and answer the two questions below. 1. How much is owed from customers at the end of 2019? 2. How much does Amazon expect to collect from customers at the end of 2019? AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 2018 ASSETS $ Current assets Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets 31.750 $ 9.500 17.174 16,677 75.101 61.797 36,092 18.929 20.497 20,816 96.334 72,705 25.141 14,754 16.314 225.248 14.548 11.202 162.648 $ $ Accounts Receivable, Net and Other Included in "Accounts receivable, net and other" on our consolidated balance sheets are amounts primarily related to customers, vendors, and sellers. As of December 31, 2018 and 2019. customer receivables, net, were $9.4 billion and $12.6 billion, vendor receivables, net, were $3.2 billion and $4.2 billion, and seller receivables, net, were 5710 million and $863 million Seller receivables are amounts due from sellers related to our seller lending program, which provides funding to sellers primarily to procure inventory We estimate losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for doubtful accounts was $348 million, $495 million, and $718 million as of December 31, 2017, 2018, and 2019. Additions to the allowance were $626 million, 5878 million, and $1.0 billion, and deductions to the allowance were $515 million, 5731 million, and $793 million in 2017.2018, and 2019. ACCT 200 FUNDAMENTALS OF FINANCIAL ACCOUNTING RECEIVABLES & INTERNAL CONTOLS ACTIVITY | PAGE 4