DD1 is 4 years old.
DH left $50 on his desk. We keep a baby gate up to his office area so the kids can't get in (he's got so much computer stuff in there, we don't one of them to get into something) so he didn't think anything of leaving the cash on his desk. He came home today and asked if I had picked up the cash on his desk and put it in my purse or something since it was gone. I told him no. He thought for hours that he lost it and was really annoyed. We asked DD1 at some point if she'd taken the money and she said she hadn't. We have no reason to assume she'd lie to us since it's not the norm for her, so we moved on.
She came to me and told me she took it, a few minutes ago, and told me she put it in her bedside table, and we went to her room and sure enough there it was. I just broke down crying...I was so upset and disappointed in her.
We were about to go on a walk to the local park but because of her lying to us, we told her we were no longer going and now she's in her room having a breakdown.
Is this kind of behavior normal for a 4 year old? WWYD in this situation? Did we do the right thing?