Hello there, CHTgrammy2.
Thanks for visiting the Community. It's my pleasure to guide you on how to handle refunds in QuickBooks Desktop.
If you want to record a refund from Paypal, you can simply Write Checks and use Accounts Receivable as your account. I'll be sharing you the steps on how to do it below:
Here's an article that provides a detailed steps on how to Write Checks in QuickBooks Desktop: Create, modify, and print checks.
That's it. Please don't hesitate to let me know if you have further questions aside from recording refund with Paypal fees. I'd be glad to help you out.