Norma tells Sheriff Romero about Abernathy and the $150K he's expecting her to bring to the pier at midnight. Romero tells Norma that he'll take care of it, but refuses to elaborate, leaving Norma just as nervous as she was before they talked.
At school, Norman finds Emma staring longingly at a banner for the upcoming Winter Formal. He encourages her to go, but Emma replies that no one has asked her. Norman offers to be her date. Emma plays it down, but she's clearly excited to go with him, even if only as friends.
Norma surprises Dr. Kurata at his office after canceling Norman's previous session. She asks him for tips about dealing with stress, and he smoothly transitions the conversation to talk of her childhood. Norma tells him about her parents, but he seems to think she's not being entirely truthful. As the questions become more personal, Norma develops an upset stomach and rushes out of his office.
Norman arrives at Miss Watson's classroom in time to overhear her arguing passionately with someone on the phone. She begs him not to tell anyone what he heard. He promises to keep quiet, and tells her that he's decided not to publish his story. Miss Watson understands. She hugs Norman as she tells him, "I guess this means we have a secret now, huh?"
After fishing a duffel bag full of cash out of a garage in a run-down part of town, Romero stops by the home of Keith Summers' sister, Maggie. Romero tells her that he knows she was the bookkeeper for her brother's business, and asks her about Abernathy, who she knows as Joe Fioretti. She doesn't know how to get ahold of him, but she says he runs similar businesses in four other towns. Romero lets her know that, if she keeps her mouth shut, nothing will happen to her.
Emma stops by the motel to show Norma her dress for the dance. Norma loves it, and holds it up so Emma can see what it looks like. Emma notices the scar on Norma's leg, but Norma brushes it off as a childhood accident before rushing out of the office.
Dylan arrives with a gift for Norma; a handgun. He's reconsidered his early decision and decided to teach her how to shoot. As they do a little target practice, Norma finally gets Dylan to tell her what he does for a living. She isn't happy with his response. She tells him that she's scared, and he tries to comfort her, telling her to trust Romero before getting back to target practice.
Norma is cleaning the motel rooms when she is surprised by a visit from Maggie. She tells Norma that Abernathy/Fioretti is not someone to mess with. If she has the money, she needs to turn it over. Maggie leaves Norma shaken on the porch.
Norman answers the door and and is excited to see Bradley until he realizes she's only there to see Dylan. Dylan gives her the contents of her dad's office, and they bond over the experience of breaking into the docks and getting shot at. Norman listens in from the other room, clearly unhappy at this turn of events.
That night, Norman is getting ready for the dance when he realizes he doesn't have any dress socks. He pitches a fit and starts a fight with Norma until Dylan offers him a pair. Norman tells Dylan that he's completely over Bradley, and that Dylan should ask her out. Dylan denies any attraction to her.
Norma sits with Norman as he waits for Emma to arrive to take him to the dance. She watches the clock approach midnight, and decides to open up to Norman, in case she doesn't get another chance. She tells him that she grew up in Akron, Ohio, and that her brother used to make her have sex with him when they were young. She says that her mother was "checked-out of her body," and that her dad was insane and violent.
One day, her father came home early and nearly caught her and her brother having sex. She panicked and knocked a hot iron onto her leg, leaving the scar. She apologizes for telling him, but Norman understands that she just wanted someone to know, and he's the person she's closest to.
At the dance, Norman can't take his eyes off of Bradley. Emma notices, and gets angry at him, and at herself for thinking Norman might come around and realize he has feelings for her. She storms out, leaving Norman without a ride home. Bradley's boyfriend, Richard, asks Norman to step outside. He tells Norman to leave Bradley alone, and when Norman tries to defend himself, Richard lays him out with a blow to the face.
As Norman walks home in the rain, Miss Watson pulls up next to him. She notices his bloody face, and offers to take him to her place to clean him up before sending him home.
Norma heads to the pier to meet Abernathy, and is surprised to see Romero arriving at the same time. She hides behind some crates as Romero offers Abernathy the money from the duffel bag, and proposes that they work together. As Abernathy reaches for the money, Romero shoots him four times and watches as he falls into the bay. Romero tells Norma to stop hiding and go home.
At Miss Watson's home, Norman gets patched up and warmed up with some tea. Miss Watson goes to change to take him home, but leaves the door to her bedroom open as she disrobes. Norman tries not to watch, but he can't help it. Norma appears to him and tells him that Miss Watson knows exactly what she's doing, and Norman knows what he needs to do.
Suddenly, Norman is running through the dark. He arrives home just as Norma does, and frantically tells her that he doesn't know what happened. All he remembers is running home. Norma assures him that everything is going to be good, and they head inside to get a fire going.
Back at Miss Watson's home, things are not good. Her body lies in a pool of blood on the floor. Her throat has been slit, and the blood runs across her necklace, from which a charm in the shape of the letter "B" hangs.