The series follows the adventures and endeavors of the title character and his various friends in the underwater city of Bikini Bottom . In this episode , SpongeBob reads a " bad word " off a dumpster behind the Krusty Krab , but does not know what it means . Patrick explains to him that it is a " sentence enhancer " which is used " when you want to talk fancy . " The two start using it in every sentence they speak . However , when Mr. Krabs hears them , he warns the two never to use no word again or any of the 13 bad words . Later on , SpongeBob accidentally swears again . Patrick then runs to tell Mr. Krabs with SpongeBob trying to stop him . However , when Mr. Krabs accidentally injures his toe , he utters all the 13 bad words . The two cannot believe it and run to Mama Krabs to tell on him . Mama Krabs , who is appalled by their use of the words , makes the three paint her house as punishment .