If it was your inventory, use an inventory write-off. Post the write-off to the supplier’s Accounts Payable balance. In effect, the supplier would be accepting payment in kind. Your local regulations may impose tax implications as a barter transaction.
It might be more straightforward to write the inventory off to a wastage account and ask the supplier for a credit note, which would be entered as a debit note. The difference between this, and what you originally did is that in this instance, you are only debiting the wasted inventory.