Answer:
See explanation section
Step-by-step explanation:
The journal entry to record the $100 received as allowance because of the poor quality product is as follows:
Debit Accounts payable $100
Credit Inventory/Merchandise Inventory $100
Since the X-mart company purchased the inventory on account, the supplier became payable for X-mart. Therefore, he made a journal entry with a payable account as credit. As the X-mart company now returned the defective goods due to poor quality, the supplier will get less amount. Therefore, it (supplier - a payable) becomes a debit. As X-mart returned the product, the inventory becomes a credit.