I respect your decision if you decide to pay. The old sayings "the best things in life are free", "love people more than things" are ones I try to live my life by. Friendship should come before money any day. I realize you're more hurt by the statement, I would be too. However there are many times I've blurted out things unintentionally with little thought, we all do. Just go with the thought that this is what happened. After a 25 yr old friendship also ask what she really meant, tell how you feel. Don't let it fester(msp?) inside you.