What action must be taken to approve the customer for a refund upon receipt of a returned item?

To approve a customer for a refund upon receiving a returned item, it is necessary to approve the Return Authorization. This process is crucial because the Return Authorization acts as a formal agreement that the return has been acknowledged and validated by the business. By approving this document, the organization confirms that the return is acceptable based on its return policy, which typically includes reasons for the return and the condition of the item.

Once the Return Authorization is approved, it facilitates the next steps in the refund process, such as issuing a refund or credit to the customer. This action ensures proper tracking of returns and maintains accurate inventory levels, reflecting that the returned item will either be restocked or marked for further action. In contrast, the other choices do not directly address the necessary approval needed for processing the refund related to the returned item.