Anniversary Functional Method - Questions

In Assignment 2, Exercise 15.   The second word is a-d.   The first word is Ray.   I kept tryng to figure out..... Ray add?  Ray aid ???  Ray I would?  (we had just learned the brief forms for I and would).... etc etc.   I looked at the Key and the 2nd word is had.   Huh?   Why no dot above the "a"?

There is another word further along in this Reading Exercise that starts with an "h" that doesn't have the dot above the first letter after the "h".......  I know we are not supposed to be learning "rules" at this point, but the only mention of an "h" to this point has been that it is signified by a dot and then they go and drop it.... huh ????