Not able to check-in item due to refund error

NOTE TO HOLLY FROM HOLLY:  This bug was likely fixed by CIRC-1207,  This ticket should be tested after CIRC-1207 is available for testing.

Overview:  If an item is checked in after following the steps below, the error "Item not checked in" occurs.  The situation that causes this error to occur is an edge case, so the Priority is P3.  Holly found this error while testing something else on the Juniper BugFest instance, and has reproduce the error twice.

Steps to Reproduce:

1. Log into the Juniper BugFest instance as an admin (with all permissions).
2. Check out an item to a test patron using a Loan Policy with no grace period and multiple renewals allowed.  (I used Holly-1-min-loan.)
3. Allow the item to age to lost, billing patron a Lost Item Fee of 100.00 and a Lost Item Processing Fee of 25.00,  Make sure the Lost Item Fee Policy is set up to age items to lost,, charge the Lost Item Processing Fee if item aged to lost, and refund the Lost Item Processing Fee is item returned/renewed.  (I used Holly-aged-2-lost-immediately.)
4. Partially pay or transfer 20.00 of the  aged to lost Lost Item Fee.
5. Partially pay or transfer 20.00 of the  aged to lost Lost Item Processing Fee.
6. Renew the item (will need to override the renewal due to item being aged to lost).
7. Note that the patron has been refunded the 40.00 they paid/transferred and the lost item fees have been "Cancelled item renewed."
8. Now declare the item lost,, which will result in billing the patron a second Lost Item Fee of 100.00 and a Lost Item Processing Fee of 25.00,  
9. Partially pay or transfer 20.00 of the  aged to lost Lost Item Fee.
10. Partially pay or transfer 20.00 of the  aged to lost Lost Item Processing Fee.
11. Now return the item, confirming that you know the item is declared lost.

Expected Results:  

1. Item is checked in.
2. Patron is refunded the 40.00 they paid/transferred for the declared lost  fees.

Actual Results:

1.  "Item not checked in" error (as shown on attached screen prints).
2. Patron is not refunded the 40.00 they paid/transferred for the declared lost  fees.

Additional Information:

Holly knows the error is related to the refund due to similar error when item is renewed (see UIU-2252).  The only difference in the steps is #11, when we return the item instead of renewing it (like UIU-2252 does).

Interested parties: