Recently my 'friend' (went to college with me, graduated with me, we got the same job after) and I were caught gossipping together and reprimanded. It was completely innappropriate and inexcusable, I fully aknowledge and accept all blame associated with that portion of bad behavior. The real meat of the problem is that I said something without thinking of course and realized later that I had completely misunderstood what it was I said, I told my 'friend' this and to ignore it and to please not repeat it to the boss because I was just plain stupid for thinking it, let alone saying it, and that I had confirmed later it was completely untrue. She reported me directly to the boss without flinching, but completely manipulated the situation to sound like she was not complicit in any of the gossip or wrong doing, that I had randomly dropped by, blatantly and outright lied to her, then tried to 'back pedal' my way out of it. I'm completely stunned about this, only I did not find out about her portion of this situation until a day later.
The first day my friend was visibily upset after our conversation and I surmised it was from this information that I stupidly assumed and shared with her and later discredited myself after I'd confirmed I was an idiot. And I tried to reassure her that I had indeed confirmed this information that upset her was not true. Then my boss very aggressively pulled me into the conference room and proceeded to intensely interrogate me about what happened that morning, I explained, she then asked my coworker in and a higher executive to have her repeat her side (at the time she just repeated the piece of information the way she had heard it the first time, not mentioning that I had apologized for passing along that incorrect information to her in the first place and not stating in completely plain terms that she felt I bald faced lied to her-just that she had been hurt by what I initially said and wanted to confirm for herself that it was untrue with the boss.)
This morning I was presented a piece of paper to sign with the day's 'facts' written on it and was completely flabbergasted to see what my friend had stated and done and how she had painted me this psychotic pathological liar and herself the innocent martyr (this employee came into my office weeping.. her coworker is maliciously attacking her with lies, etc etc.)

The problem is: She really needs this job, she's a single mom living in her mom's basement. She may be an apparently very ****ty friend, but she is a friend none the less. I already have several more lucrative job offers in the works, am married with financial security so I signed the paper and took the fall to make the poop storm end and so that she could save face. BUT she now continues this charade after all this has happened, making it a point to avoid me at lunch, give me the silent treatment throughout the day. I want to be a good friend, but I am starting to resent that I let my professional reputation and integrity take a serious blow on her account just so she can continue to blow it out of proportion and drag me through the mud. And I don't even know why! It does not logically make any sense. If anything I have done everything in my power to support and defend her to the boss and coworkers-I've even caught and fixed her mistakes for her so she wouldn't get in trouble.
I don't know what to do, it's quite clear she is no real friend, but I still feel guilty putting blame on her since it was my thoughtless comment that started this whole thing, but she took it and blew everything way out of proportion and now (even if I don't really love this job and even if I have other offers) I am worried I am going to get fired over this. I have never been fired before!

What was the comment that started all this you ask yourself? "...yea I think she said something about 'wondering why it was taking you so long to get that report done', I know I'm still having a hard time with it myself because I only got second hand training" "Oh nevermind, I just asked her quick this morning if she meant ME when she was muttering under her breath yesterday and she laughed back that yea, who else could she mean. so I misunderstood and told you wrong! she was wondering why it was taking ME so long with the reports, NOT you. My mistake, I just heard it quick in passing when I was walking away from her office. Sorry I'm an idiot."

My boss is now also denying/not remembering that this confirmation of idiotic side chatter ever occurred where I asked her about the comment and she answered me with this information. I feel like I'm in the twilight zone.

I asked to speak with my friend after work today to clear the air and nip this in the bud at least between us. She told me that things got carried away and that she never expected things to turn out how they did, but she has not apologized to me and hasn't returned any of my texts. I feel like she's still got something up her sleeve for me and it's making me sick with anxiety. I'm hurt, confused, betrayed, and angry... my boss believes my 'friend' now that I'm a psycho and a liar (but has pulled me aside repeatedly throughout the day to tell me she forgives me for lying and not to do it again (!! ) and people at work are gossipping behind my back about it because the boss, her, and our coworker that she's been gossiping with all along are talking with other people about it. Should I just call it quits? :(

This is a difficult one. Try to start a friendship with the "Friend" it will make them feel guilty as hell. Take him/her out to lunch and talk directly about the subject. Goodluck
NT

Take one of those lucrative job offers, sounds like your friend started using you or getting bored with you after yous both got the job despite your friendship in college, & she was probably just looking for an excuse to move on from you, all you can do is ignore it, karma will catch up to her one day & she'll probably try & suck up to you when people stop talking to her, so take one of those job offers that you said you been offered