Wow that's a hard one since she's your friend. If she was just an employee I would say just take it out of her pay. But since she's a friend you don't want to hurt your friendship. This is why I would never get into a business with a friend. Business you and friend you are two different people.

I would talk to her and let her know that you don't have the money to replace that chair that her son broke and you really need to have it replaced. See if she offers.

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