you need to use the the yellow bottle first, then the blue one. Yellow bottle can be found in the backyard
Yes, but for some reason the bottles only work on the head after the enemies start acting up, and whenever it was time to use the cloth, the monster was always standing at the door, I didn't understand how was I suppose to not let him be there, I do know that we're suppose to keep the doors closed, lights on etc but it didn't work for me on that part unfortunately.