Orange Company uses its several years' of collections history to estimate the amount of its accounts receivable that will become uncollectible at the end of each year. Orange Company has a year end of December 31, 2020. December 31, Historical records show that, based on the following accounts receivable aging 2020, the following percentages will not be collected: Percentage Estimated Balance To Be Category Owing Uncollectible O to 30 days outstanding $ 362,500 2% 31 to 60 days outstanding $ 240,000 4% 61 to 90 days outstanding $ 75,200 8% 91 to 120 days outstanding $ 25,000 12% Over 120 days outstanding $ 22,300 22% On February 12, 2021, Orange determined that it would not be able to collect any of the account receivable owed by Grape Inc. On August 3, Grape paid Orange part of the previously written-off balance. Other information pertaining to the accounts receivable of Orange Company follows: $ Balance in accounts receivable at December 31, 2020 725,000 Unadjusted debit balance in allowance for doubtful accounts at December 31, 2020 $ Amount owing by Grape Inc. on February 12, 2021 $ Amount paid by Grape Inc. on August 3, 2021 $ 6,200 1,600 520 Required: a) Prepare the necessary journal entries for Orange Company for bad debts for the 2020 and 2021 years. Assume that Orange uses the allowance method of accounting for bad debts. Round all answers to the nearest dollar. b) How would your answer to part (a) change if the unadjusted balance in the allowance for doubtul accounts at December 31, 2020 was a credit in the following amount: $ 10,242