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Can anyone help me to know how can I test the listAdditionalRecipientReceivables API implementation as it cannot be tested on sandbox in Square connect payment gateway at backend side?

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Unfortunately, the ability to test the Reporting API in sandbox isn’t currently available for Square’s API. In order to test you will need to use live transactions. 

We are constantly improving the product based on feedback like this, so I’ll be sure to share your thoughts with the API team.