In the payment amount column beside the Credit Note you should have entered -$1448.82.  You have entered the full amount to be used, not the amount to zero the amounts owing.

Now that you have that entry on screen, run the journal entry report from the Report menu and you will see where the rest went.  I can't see that part of the screen but I assume it was debited to the bank or credit card account.

You should be able to use the Adjust button on the toolbar and correct the entry.

Omg, I cannot believe I didn't see that!  Thanks so much Richard!

Sometimes it's hard to see what is right in front of us (forest/trees).  Always check your journal entry before posting.  It will help you prevent errors.  The ability to do this is one of the best features of this program.

So true and thank you!