diff --git a/appservice/consumers/roomserver.go b/appservice/consumers/roomserver.go
index f8ed834fe..c91616227 100644
--- a/appservice/consumers/roomserver.go
+++ b/appservice/consumers/roomserver.go
@@ -103,7 +103,7 @@ func (s *OutputRoomEventConsumer) onMessage(
 		var output api.OutputEvent
 		if err := json.Unmarshal(msg.Data, &output); err != nil {
 			// If the message was invalid, log it and move on to the next message in the stream
-			log.WithError(err).Errorf("roomserver output log: message parse failure")
+			log.WithField("appservice", state.ID).WithError(err).Errorf("Appservice failed to parse message, ignoring")
 			continue
 		}
 		switch output.Type {
@@ -145,7 +145,7 @@ func (s *OutputRoomEventConsumer) onMessage(
 
 	// Send event to any relevant application services
 	if err := s.filterRoomserverEvents(ctx, state, events); err != nil {
-		log.WithError(err).Errorf("roomserver output log: filter error")
+		log.WithField("appservice", state.ID).WithError(err).Errorf("Appservice failed to filter events")
 		return false
 	}
 
@@ -161,6 +161,9 @@ func (s *OutputRoomEventConsumer) filterRoomserverEvents(
 	ctx context.Context, state *appserviceState,
 	events []*gomatrixserverlib.HeaderedEvent,
 ) error {
+	// Filter out the events down to only ones that the appservice has
+	// any interest in.
+	// TODO: We can probably benefit from some caching here somewhere.
 	filteredEvents := make([]*gomatrixserverlib.HeaderedEvent, 0, len(events))
 	for _, event := range events {
 		if s.appserviceIsInterestedInEvent(ctx, event, state.ApplicationService) {
@@ -169,6 +172,13 @@ func (s *OutputRoomEventConsumer) filterRoomserverEvents(
 		filteredEvents = append(filteredEvents, event)
 	}
 
+	// If there are no events that we are interested in then don't bother
+	// doing anything else at this point.
+	if len(filteredEvents) == 0 {
+		return nil
+	}
+
+	// Create the transaction body.
 	transaction, err := json.Marshal(gomatrixserverlib.ApplicationServiceTransaction{
 		Events: gomatrixserverlib.HeaderedToClientEvents(filteredEvents, gomatrixserverlib.FormatAll),
 	})
@@ -176,9 +186,11 @@ func (s *OutputRoomEventConsumer) filterRoomserverEvents(
 		return err
 	}
 
-	txnID := 0 // TODO
+	// TODO: We should probably be more intelligent and pick something not
+	// in the control of the event. A NATS timestamp header or something maybe.
+	txnID := filteredEvents[0].Event.OriginServerTS()
 
-	// PUT a transaction to our AS
+	// Send the transaction to the appservice.
 	// https://matrix.org/docs/spec/application_service/r0.1.2#put-matrix-app-v1-transactions-txnid
 	address := fmt.Sprintf("%s/transactions/%d?access_token=%s", state.URL, txnID, url.QueryEscape(state.HSToken))
 	req, err := http.NewRequest("PUT", address, bytes.NewBuffer(transaction))
@@ -186,20 +198,21 @@ func (s *OutputRoomEventConsumer) filterRoomserverEvents(
 		return err
 	}
 	req.Header.Set("Content-Type", "application/json")
-
 	resp, err := s.client.Do(req)
 	if err != nil {
 		state.backoffAndPause(err)
 		return err
 	}
 
+	// If the response was fine then we can clear any backoffs in place and
+	// report that everything was OK. Otherwise, back off for a while.
 	switch resp.StatusCode {
 	case http.StatusOK:
 		state.backoff = 0
-		return nil
 	default:
-		return fmt.Errorf("non-OK status code %d returned from AS", resp.StatusCode)
+		state.backoffAndPause(err)
 	}
+	return nil
 }
 
 // backoff pauses the calling goroutine for a 2^some backoff exponent seconds