USA Cancel the deal and refund

[Tal]

I am currently using Quiickbook for Accounting I have a used car dealership I sold a car for 6000 Plus taxes and DMV fees the client gave me down payment of 3000
And credit card which deposit to my bank 2 days after He wanted to cancel the deal.
We agreed that there is a $500 restocking fee I credit him for the 2500
My question is How do I reflected the invoice with the restocking fees And
How do I return the item back to the inventory and what should I do with all the rest of the money the DMV fees the doc says and the rest of them and that he didn’t
Paid yet.

 

[AGH the CPA]

lets assume the following:
car price $6000
taxes $600
DMV fees $400
Total sale $7000
deposit $3000

DR AR $4000
DR cash $3000
CR sales $6000
CR taxes payable $600
CR DMV fees payable $400

customer cancels sale (no other payments have been made - ie to DMV or tax)
DR sales $6000
DR taxes payable $600
DR DMV fees payable $400
CR AR $4000
CR cash $2500
CR other income* $500

* you might have an account called restocking income