S-corp stock sale with seller financing and how to handle long term liability and owner equity when payments are made

Owner A did not sell his stock back to the S corp, only outside the S corp and thus the seller financing is also outside the company.. Residual owners B and C have  personal loans payable to former owner A. If for convenience the loans are repaid from company profits these are in fact deducted from pass through distributions.

In the company books there is no change in total stock value or equity (after any adjustments per the 2019 1120S) and so it is a simple transfer of equity from one owner to the other 2.

@john-pero, thank you for your help, what you said makes sense and helps me wrap my head around it all.

Yes, owners C and D are making payments from the company to former owner A. How do we actually deduct the payments from pass-through distributions (ie: what steps in QB do we take and when, journal entries, etc.)?

We had set up a long term liability and have been making payments via check that have reduced this liability balance. Should we keep this long term liability in place or should we have not set it up at all?

You said there would be no change to equity…based on what we have done so far there is a change in equity. How do we correct this?

I guess an easier question is how should all this be set up and processed in QB if we were to do all this over again and start fresh tomorrow?