[morethanpretty]

I would say he has to pay. He broke it. He already signed the bill of sale for it as is, I don't see small claims court taking his side on this if it comes to that. Has he told you he won't pay for it now?
Also, you should not feel bad for making him pay. This is a toy not a necessity that he needed, he should have the money to cover the cost without breaking the bank, he just might not have the money for another toy. Its not like you'll be forcing him and his family onto the streets about it.