Yosemite applications folder missing

I was helping my son with his new macbook air and setting up Yosemite. I was able to drag the downloads folder to the right side of the line but for the life of me could not locate the actual applications folder. Any suggestion? Thanks.

Open Finder. Go to Preferences, Sidebar. Place a check in those items you wish to appear in the sidebar. And... there is no need to "drag" the downloads folder or any folder that belongs on the right side of the dock. Just right click on "Downloads" from the Finder Sidebar, and select "Add to Dock". You can do the same thing for Applications and Documents.