Hello @obradley,
Let me help share information about how you can fix your customer's balance to avoid posting it as an income into your accounts.
To start with, the income showing in your Profit and Loss came from the invoice you created for the remaining balance even after creating a refund receipt. Also, the refund receipt will not offset the remaining balance of your customer since it'll post the amount into the affected product or service.
With this, you'll have to delete the invoice and refund receipt. Once done, create a check and post the amount directly from our customer's account receivable so you can remove the remaining balance. Let me show you how.
- Go to the +New button.
- Select Check.
- Under Payee, select your customer with the remaining balance.
- Below the CATEGORY column, select your accounts receivable.
- Enter 1247 as the amount to refund.
- Click Save and close.
Learn more about handling your customer refunds with this article: Record a customer refund in QuickBooks Online.
Additionally, I've got you this helpful article for the steps in creating a document showing all your customer's transactions: Create and view customer statements.
If there's anything else that I can help you with, please let me know in the comments. Stay safe!
