Made a purchase for a client and were reimbursed by client. We had to return item.We returned Client $. What category do we record the return? Same? Reimbursable Expense?

For simplicity, I would enter them to the same category with the original sale. Doing so with create an offsetting effect in your P&L. 

Thanks. Would the original incoming reimbursement payment be categorized as “Reimbursable Expenses”? So you have outgoing credit card payment for item (RE), reimbursement from client (RE), and return $ to client (RE). ??