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How do I return customers funds?

A customer purchased a jacket from me, when I accepted the purchase I thought the item was in my inventory.  When I went to pull the item it wasn't there.  I asked around and found out that my teenage son gave it to a friend of his not knowing it was inventory.  How do I return the funds until I find the item?

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How do I return customers funds?

Go to the order and cancel it as out of stock and refund the buyer.

Have A Great Day.
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