Eveready Co. sells heavy-duty batteries, which cost P7,000, at a total installment price of P12,000. A regular customer buys a unit and trades in his old unit for an allowance of P2,500. Eveready spends P250 to recondition each unit traded in and then sells them at P3,250 each. A profit of 20% results from the sale of used batteries.

1. What was the trade-in over-allowance granted to the customer?