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I received $200 for a project that I was going to do for a customer....

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Accounting

I received $200 for a project that I was going to do for a customer. I debited cash and credited sales for $200. I also incurred $50 expense for this project so I debited expense and credited cash for $50. Later the job got cancelled and I agreed to refund the customer $150 ($200 received minus the $50 I spent), How do I record the $150 refund. Do I debit sales for $200, credit cash $150 and credit my original expense $50? Or do I leave the expense balance as is and just debit revenue for $150 and credit cash for $150? Thanks

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