Okay, I looked up a transcript

It's not entirely a good one, lines are mostly unlabeled, but if I'm reading it correctly, what happened is that Doug called the police and reported his bike stolen, his statement was taken but otherwise, the police don't do anything other than say it was probably a kid who stole it since a burglar would have taken something more valuable, and then found the kids who had it, confronted them about stealing it, and threatened to contact the police again if they did not return what he had every reason to believe was his stolen property.

Now, the kids who had it did, in fact, say that they purchased it from a thrift store but, you know, they'd also apprently mutilated the bike so I don't think that Doug just blowing that off as a lie is unreasonable.

Ten minutes later he gets home to his parent with the replacement bike and the explanation that they gave his old bike away to a thrift store and then not a minute after that the police come down in full screaming siren mode to.. Tlk to Doug's parents about how their son has been accused of stealing a bike.

...Which is all kind of bull****. You know. Either the police are incompetent and didn't think to cross-reference the report of a kid's bike getting stolen against the report from the same day of that same kid stealing a bike or the kids he took the bike from left out almost all the details of the encounter when they filed their own report.

It gets cleared up, Doug gives the bike back, explains the situation to his parents, and then they ground him.