Lindsay Lohan was trying on a slew of jewelry before walking out of the store with the $2,500 necklace ... this according to the police report obtained by TMZ.
The report outlines Lindsay's every move -- from the time she walked into the store to the time she left -- and it's all on surveillance video.
According to the report, Lindsay walked in and removed her necklaces and placed them on the counter. The report says, "Ms. Lohan then proceeds to try on numerous rings and three different necklaces including the missing yellow diamond necklace."
The police report then says Lindsay continued shopping while wearing the yellow necklace.
Then, at 6:12 PM, the owner locked the store but let Lindsay and her friend Patrick continue to shop. That's when Lindsay tried negotiating a ring she had been eyeing, but she didn't like the $3,600 price tag. Lindsay took $3,000 cash out of her purse and offered it in exchange for the ring, but the owner said no. Lindsay then said, "Ok, we'll come back tomorrow."
When Lindsay prepared to leave the store, she put her own necklaces back on her neck, along with the yellow necklace in question ... then walked out of the store.
The owner noticed a short time after Lindsay left that the yellow necklace was missing, but figured she took it by mistake and would bring it back the next day. Lindsay never returned to the store.