Welcome to the Community, RJBreneman.

I'm here to help mark the credit memo as refunded in QuickBooks Online (QBO).

You should create a check or an expense transaction to offset customer's open credit. To do so, please follow these steps:

1. Click on the + New button.
2. Under Vendors, choose Check or Expense.
3. In the Account column, choose Accounts Receivable.
4. Enter the credit in the Amount column.
5. In the Customer column, choose the customer.
6. Select Save and close.

    

   

    

Then, let's link the check or expense with the credit memo:

1. Click on the + New button.
2. Under Customers, choose Receive Payment.
3. Fill out the following fields:
   • Customer
   • Date
   • Payment Method
   • Reference No.
   • Deposit To
   • Memo (Optional)
4. Under Outstanding Transactions, select the Check or Expense that you created.
5. Under Credits, select the unapplied payment.
6. Make sure Amount Received is zero.
7. Click on Save and close.

    

   

    

For further guidance, you can also check this article: Record a customer refund.

This should point you in the right direction. If you have additional questions, you can always reach back to me. I'll be around. Have a great weekend.