Testing extension locally with firebase emulator

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I followed steps 1-4 at Extensions Marketplace by Firebase (https://extensions.dev/extensions/revenuecat/firestore-revenuecat-purchases). In step 4, it says that I can test the extension locally with firebase emulator. Could you please help me understand how this is possible? I have not followed step 5 yet.

What I would like to see is that when a user pays for subscription, then the events collection gets updated locally so that I can trigger cloud function.

Also, currently I am using 3 different environments were each environment corresponds to firebase project. I installed RevenueCat instance for each environment but when I run the emulator, all three RevenueCat instances runs. I would like the instance for the current environment to run. The others should not.

Thanks