Record the following transactions on the books of Sweetwater Ltd., which uses a perpetual inventory system. Sweetwater's expected rate of return on sales is 4%

For this question, The "account title" for the first May 3 won't be "Account Payable" or " Sales returns and Allowance. Please use the proper account title.

B) On May 6, Valez paid it's account.

On May 3, merchandise with a selling price of $1,040 was returned by Valez. The goods had a cost of $740 and they were restored to inventory. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)