Record the following transactions on the books of Espresso Ltd., which uses a perpetual inventory system.

1. Sold $26,500 of merchandise on April 28 to Valez Ltd., terms 2/10, n/30. The goods sold had cost Espresso $17,700. (recording sales and cost of goods)
2. On May 1, Espresso sold $34,800 of merchandise to Quilmes Ltd., terms 2/10, n/30. The goods sold had cost Espresso $24,800. (recording sales and cost of goods)
3. On May 3, merchandise with a selling price of $1,300 was returned by Valez. The goods had a cost of $880 and they were restored to inventory. (recording sales returns and cost of good returned)
4. On May 6, Valez paid its account.
5. On June 30, Espresso added one month's interest to Quilmes's account for the overdue receivable. Espresso charges 12% per year on overdue accounts.