The lady paid without an issue and was very apologetic about the whole situation. She knows how her dog is and tries to stay away from other dogs. The dog is fine with people just horrible with dogs. I was very pleased with how she handled everything when we spoke to her. She said she came looking for us and couldn't find us. Actually she seemed relieved that we found her.
As for Rosie...she's taking advantage of the situation
She keeps looking on the counter where her treats are and whines. Haha. She's pouting right now. We have given her far too many treats and said no when she whined. It was so hard to say no. Thanks for all the messages.