When Arthur is assigned to write a story, he writes about how he got Pal (from "Arthur's Pet Business"). Afraid that people will find it boring, Arthur begins fictionalizing the events using advice from different people. Once he realizes how strange the story is, he changes it back and learns that the truth is still interesting. It is Downtown Day in Elwood City and the Reads attend the festival. They pass a clown giving balloons and Kate begins crying because she wants a balloon. Nobody but Pal understands why Kate is crying, so Pal runs off to get a balloon, but Arthur thinks he is running away from him.