1. ABC, Inc. sells to wholesalers on terms 2/15, n/30. ABC has no cash sales but 50% of ABC's customers take advantage of the discount. ABC uses the gross method of recording sales and trade receivables. An analysis of ABC's trade receivables balances at December 31,2017, revealed the following:

Age Amount Collectible

0-15 days 100,000 100%

16-30 days 60,000 95%

31-60 days 5,000 90%

Over 60 days 2,500 500

In its December 31,2017. Statement of Financial Position, what amount should ABC report for allowance for discounts?

• Answer not given
• P1,620
• P1,000
• P1,675
• P2,000