What amount should wayen report for allowance for discounts

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Wayen, Inc. sells to wholesalers on terms of 2/15, net 30. Wayen has no cash sales but 50% of Wayen's customer take advantage of the discount. Wayen uses the gross method of recording sales and trade receivables.

An analysis of Wayen's trade receivables at Dec. 31, 20x1 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
                      167,500

Problem 1: In its Dec. 31, 20x1 balance sheet, what amount should Wayen report for allowance for discounts?

Reference no: EM132790764

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