please answer carefully. i saw some solution here, but they were wrong. 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. a. Online sale of merchandise owned by Amazon b. Online sale of merchandise owned by third parties c. Sale of a Kindle e-reader d. Collecting cash for an Amazon Prime membership e. Sale of media content such as a movie available for download Performance Obligation Deliver good(s) to customer Provide specified service + ● + + When Revenue is Recognized
please answer carefully. i saw some solution here, but they were wrong. 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. a. Online sale of merchandise owned by Amazon b. Online sale of merchandise owned by third parties c. Sale of a Kindle e-reader d. Collecting cash for an Amazon Prime membership e. Sale of media content such as a movie available for download Performance Obligation Deliver good(s) to customer Provide specified service + ● + + When Revenue is Recognized
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
J5.
Account
Transcribed Image Text:please answer carefully. i saw some solution here, but they were wrong.
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.
a. Online sale of merchandise owned by Amazon
b. Online sale of merchandise owned by third parties
c. Sale of a Kindle e-reader
d. Collecting cash for an Amazon Prime membership
e. Sale of media content such as a movie available for download
Performance
Obligation
Deliver good(s) to customer
Provide specified service
c
+
+
♦
→
When Revenue
is Recognized
→
=
C
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education