Welcome back to the Community, @tmoney5252. I'm here to provide additional help so you'll be able to record your customer refund in QuickBooks Online (QBO).

In QBO, there are several ways on how you can record the customer refunds. I'm happy to guide you how.

Yes, you can create a credit memo, if you want to return the payment for a paid invoice. Then, enter an expense transaction to zero out the balance of the customer. Follow along below to get this done right away.

Create credit memo:

1. Navigate to the + New button and select Credit note.
2. Next, in the Customer field, select the customer.
3. Then, enter the Credit Note Date, Amount, Tax, and Product/Service.
4. Once done, click Save and close.

After that, create an expense. Then, use the Receive payment option to link it to the credit memo:

1. Click + New and select Expense.
2. In the Payee field choose the customer.
3. Then, select the bank the money is being refunded from, in the Payment account field.
4. Select Accounts Receivable in the Category field and enter the refund amount. 
5. When done, click Save.
6. Go back to the + New button and click Receive payment.
7. Pick the Customer and select the Payment method and Deposit to.
8. The balance should be 0 as they will cancel each other out.
9. When finished, select Save and close.

If this refund is for product or services that did not satisfy the customer, you can create a Refund receipt. For reference, feel free to check this article: Record a customer refund or supplier refund in QuickBooks Online. 

Once everything if fine, you can now proceed in matching the transaction in your Banking page. 

Keep me posted if you have any other concerns managing your customer transactions. I'd be happy to lend a hand. Have a good day ahead and stay safe.