How's her hearing and sight?
Could be she just doesn't recognize him immediately and has some fear.

Only thing I can think to try is for your BF to start carrying treats with him and give her one when he leaves and when he returns so that she can relate a positive experience to his returns.

Even when my elderly dogs were blind and deaf, they could still sniff out a good treat!

Sounds like submissive OR excitement urination. Your friend should enter the house very quietly when he gets home, and be very low key - ignore her. Just leash her up (scooch down to attach the leash, don't lean over her) and walk her outside the house without a word. Very low key side to side greeting, no eye contact, no excitement.

Her sight and hearing is great. She greets everyone at the door, whether it is me, my BF, or my sister when she stops by. She knows when people are here. I will suggest to him the treat idea, and also tell him to try a different approach to letting her out.

Something has to happen. We are both getting tired of cleaning up dog pee.

She knowns when she does it that its wrong, because she goes into the bedroom and "hides" on her bed.

She likely does NOT know that it's wrong. Going to the bedroom is her reaction to your friends (or your) response to the accident. Try reacting the same way when she doesn't have an accident. She'll run to the bedroom and hide because of your behavior not because of any sense of guilt. Important not to apply human emotions to dogs, it just makes things more difficult to manage. And treats will just get her more excited. Low key and ignore her. Here's a link to a good article on submissive and excitement urination. Please read it.

Here is a link that might be useful: Excitement urination