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Yes, you can record a refund in your QuickBooks Online (QBO) account, @officecuriouscre.
You can use the Expense feature in QBO to record a refund to your customer. Let me guide you how.
I got you this article for more details: Record a customer refund in QuickBooks Online.
I also recommend checking our Income and expense page to learn some tips and best practices in managing your income.
Do get back to us in case you have further questions or help in your QBO account. I'll be around to help. Have a great day and stay safe.