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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: getgo234 who wrote (31047)	12/24/1998 9:07:00 AM
From: Mark Fowler	Read Replies (1) \| Respond to of 164684

Are there any accountants out there that can tell us what the impact is on the balance sheet and the income statement when AMZN sells gift certificates in December and the certificates are not utilized until January. << Assets=liability+[Equity(revenues-expenses)] I would assume it would be an unearned liability on the balance sheet and recorded under revenues on the income statement.

To: getgo234 who wrote (31047)	12/25/1998 1:49:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Are there any accountants out there that can tell us what the impact is on the balance sheet and the income statement when AMZN sells gift certificates in December and the certificates are not utilized until January. Thanks for your help. getgo, I am not an accountant but do know how gift certificates are booked. Mark's reply was pretty much correct. I wish to try and clarify one item on Marks reply. The gift certificate that has not been redeemed is booked as other revenue. However, it should not be booked under sales but I see Amazon books them that way. That is a trait of Amazon. The liability column should have a separate line item for for customer deposits. The liability of customer depositis would equal the other revenue ( not sales) portion of other revenue. It is a wash and has no affect or profit and loss. Glenn PS Amazon uses special bookkeeping for a retailer. One that Covey is creating as she sees fit.