I assume that each site is responsible for the creation of the records in table1 and that all of the records in question (at both remote sites) are intended to be unique. If you want to replicate these to a single database you need to think about how you would identify each of the records when they arrive at the central database (the subscriber).
If, for instance, both publishers use the same values for their primary keys (e.g. IDENTITY (1, 1) at both databases), when you send data to the central subscriber, you will end up with errors (duplicates on INSERT) for the second record to attempt to use a key value or, if configure replication to ignore these errors, the second INSERT will fail and result in no further action. The result of this would be just the 5 records you are seeing
Ideally, you would change the primary keys so that each site uses a unique set of keys. You could use different IDENTITY ranges for each source table or add another column that identifies the source. There are many ways to achieve this but if you don't, you will run into problems.