Paypal refund, unsure how to handle the situation

Thanks for sharing your concern with us, @buckmars12.

I'll provide you the steps on how to record this transaction in QuickBooks Desktop (QBDT).

To record the amount that was spent for the Paypal account that was hacked, we can create a check transaction for it. Here's how:

1. Go to the Banking menu and select Write Checks.
2. Select your bank account in the BANK ACCOUNT in the drop-down list.
3. In the ACCOUNT drop-down menu, select an expense account to record your Paypal transaction. 
4. Click Save & Close.

Once done, create a bank deposit to record the amount that was refunded by Palpal to your bank account.

1. Click the Banking menu and select Make Deposits. 
2. Choose your bank account from the Deposit To drop-down menu.
3. Select Paypal from the RECEIVED FROM drop-down list and fill out the rest of the field.
4. Close the transaction by clicking Save & Close.

Also, you can run the Transaction List by Vendor report in QuickBooks. This will show you the list of all transactions for each vendor. Just go to Reports and select Vendors & Payables. Then, click Transaction List by Vendor.

If you ever have other questions I can help you with, feel free to swing by the Community! I'll get back to you as soon as possible. Have a great weekend and stay safe.