I have a few customer cancellations and I don’t think I am categorizing the refunds correctly. Here is an example of how I have entered a reservation and then refunded. I don’t think it is correct because it treats the refund of the sales tax and platform fee the same way as if I was transferring the sales tax To the state/county and paying the platform fees to the provider (VRBO).
Jane Doe reserves and makes payment 1:
Short Term Rental income $697.52
Cleans and Upsells $100.00
Taxes to Remit $172.15
Platform Fees $160.00
Jane Doe cancels reservation:
Short Term Rentals -697.52 Cleans and Upsells -100.00
Taxes to Remit -172.15 Platform Fees -160.00
How should I be categorizing the above transactions?