Final answer:
When a seller is at risk due to product returns, options include recording sales and handling returns as they occur, not recording sales until return periods end, or recording sales but estimating future returns for adjustment.
Step-by-step explanation:
An alternative available when the seller is exposed to continued risks of ownership through the return of the product includes options such as 1) Recording the sale, and accounting for returns as they occur in future periods, 2) Not recording a sale until all return privileges have expired, and 3) Recording the sale, but reducing sales by an estimate of future returns. Each option provides a different approach to handle the uncertainty and potential financial impact of product returns. For instance, a seller might record the sale and deal with actual returns as they happen, which helps in understanding the return patterns over time. Alternatively, they may choose to wait until the return period is over to record the sale, minimizing the risk of having to adjust financial statements later on. Another strategy could be to record the sale immediately but adjust the sales figures by an estimated amount of future returns, which is often based on historical data and return patterns. This estimation allows for a more accurate reflection of the actual revenue that the company can expect to retain.