Thank you. That does help.

Just one more question: If the received payment has not been linked to a bank record, I should set the Expense "Payment account" to "Undeposited Funds" (same as the received payment)? And if it has been linked, I then should set the bank account it was linked to? (this can happen if the payment processor processes the refund from the same pool that the initial payment was made before being deposited into our account)

So basically, I need to know if the payment being refunded has been recon'd to a bank account or not to ensure I choose the right Payment account.