In the Closet

Okay, let me see if I can explain this.  When I., my two year old, sees her older sister use the restroom, she wants to try too.  Great with me!  I plan on getting her potty trained when we get home from vacation.
Today, when N., my four year old, finished using the toilet, I. started pulling at her clothes to let me know she wanted to sit up there too, so I got her shorts and diaper off and placed her on the potty.  She hasn't ever used the toilet before, but I let her sit up there a few times a day.  Still no joy today.

When she was ready, I let her down and she followed me to her room to replace her diaper.  While I was gathering the diapering gear, she ran into the closet.  I called for her to come get her diaper on and she readily appeared--a suspicious sign I should have recognized right off the bat.
I put her up to put a fresh diaper on and noticed her legs were wet, and the wet smelled like urine.  That little mess got off the toilet and went and directly peed in the closet! Really?! Ugh.