Credit Card Refund for Expense Split with Friend

I feel like this should be obvious but I've somehow overcomplicated it.  What is the best way to handle a credit card refund when I will be paying a friend back for their half?  I'm familiar with how to handle them generally, including when on the float and when they're in a different month or credit card billing cycle.


Friend and I are going to a show.  I bought the seats on my credit card (let's call it $100).  Friend paid me for his share via Venmo at the time of purchase (let's call it $60 instead of splitting it, so that it's easier to track which money corresponds to what).  I entered the initial transaction as a $100 expense in the budget category, funded it with $40 for my ticket, and when friend's Venmo payment processed into my checking account and thus the budget, I assigned that $60 to TBB and from there assigned it to the Entertainment category.  So, a fully budgeted-for expense on a credit card.

A couple months pass.  The show gets canceled due to coronavirus, and the theater issues a $100 refund to my credit card.  I then send my friend $60 via Venmo (drawn out of my checking account).  I can't get my head around how to process this into my budget correctly.

One option that comes to mind:  

  1. Enter the $60 I paid back to my friend as a cash expense under Entertainment.   Leave it unfunded initially.
  2. Split the credit refund into two categories: (1) $60 assigned directly to entertainment or some sort of IOU category, to offset the expense of reimbursing friend; and (2) $40  to either TBB or back to the original Budget category for the expense (entertainment), depending on how I process credit card refunds. 

(To slightly complicate matters I'm working my way off the credit card float and try to apply refunds to TBB when possible to help bring down the float - I figure if I wasn't expecting to have the money anyway, might as well do that.  I don't have to necessarily do that here, just explaining.)  


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