@mondyinvest You're correct in that it will always show up in...

@mondyinvest You're correct in that it will always show up in the quarterly reports. The numbers will grow as you say. This is because a consolidated cash flow statement does not recognize accounts receivable. Accounts receivable on a cash flow statement will appear as cash used. Receipts from customers only shows sales to date. When it comes to BNPL the payments to merchants is recorded as accounts receivable because the business is allowing the sale to be paid out over time. That means the customer owes the business that amount which is to be paid at the agreed time frame e.g 3 or 6 months.

On a financial statement accounts receivable appears as an asset. Hence it's not actually a loss. Losses on accounts receivable are shown as bad debts which are deducted from the total.