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How to handle a COD item that was paid for by customer & insurance company

edited Dec 6, 2019 2:40PM in General

Hi,
   I shipped an $1100 invoice to a customer by terms of COD and insured the items for $1100.  When the box was received it was paid for by a check and then DHL electronically deposited the money into my account (so it was paid for).  When the customer opened the box, an item that was $750 was found to be broken.  I filed a claim with the insurance company and have received a $750 check from them.  I am wondering the best way to handle this in NS.

My questions are...

Should I accept payment first (since that did my account first), then do a credit (customer has already been shipped other items to replace this), but then how do I handle the $750 check from the insurance company? 

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