> Sold all assets of a small S corporation; ( sold business but corporation sill exists.
> Corporation took a carry back note from the buyers for 60 months.
> Buyers send monthly check to the corporation.
> when the corporation then writes check(s) to the corporation owners WHAT ACCOUNT AND TYPE SHOUND THE CHECKS BE POSTED IN? (EQUITY, ASSET, or WHAT?).

Thanks a bunch.

P.S. We can't end the corporation until the loan is paid back in full.

If I understand what you have written, you should have established a loan account (asset) into which to receive the payments If you are paying the owners (Dividend) or returing capital then reduction of Issued Capital