Which entry would Venden make to account for the expected returns at January 31, 2020?

The correct entry to account for expected returns involves recognizing the potential reduction in revenue due to those returns. By debiting Sales Returns and Allowances, Venden is documenting the anticipated returns, which serves to reduce net sales. This action accurately reflects the decrease in revenue as a result of returned goods and recognizes a liability with respect to the expected returns.

Simultaneously, crediting the Allowance for Sales Returns and Allowances creates a contra asset account that indicates the estimated amount of sales returns that are expected. This allowance accounts for returns that may be made in the future, ensuring that the financial statements accurately represent the company's sales performance and financial position. This approach aligns with the matching principle in accounting, where revenues and related returns are accounted for in the same period.

Therefore, this entry appropriately acknowledges the company's realistic expectations regarding sales returns, maintaining the integrity of its financial reporting.