Deductions & credits

I went back and looked over each transaction from PayPals 1099-k and there weren't any Etsy sales--I was mistaken.  All of it but $250 was money for goods sold that I was getting rid of around the house, whether it was sold on eBay or Facebook Marketplace.  The $250 was where a relative paid me to make a cake for a wedding.  So the entire $682.24 needs to be accounted for under hobby income?  I'm not running a business at all doing this.  I didn't know if I could just put down the 250 for the cake as hobby income and not count the rest.  But then there would be a discrepancy on what the IRS sees from the PayPal form.  

 

I apologize for the confusion--this stuff is hard to understand and I don't want to do the wrong thing.  Thank you!