The report asks if there are "alternate displays", and a place to photograph and count what you find. As long as the round/square/bouncer displays are filled properly, there is nothing saying overflow can't be placed somewhere appropriate if the store has a spot for it.
Unless I am misunderstanding you, you should have refilled the displays with the extra inventory and then merchandised, inventoried, and photographed the items you found around the store.
Some stores don't have space for back stock and put everything on the floor as soon as it arrives. We can't over stuff the displays, so I have stores that have allocated shelf space, and others that have bins. The large beanies are routinely placed throughout the store, which CI also finds acceptable.