Addition and Multiplicaiton using GF(2^4)

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I am learning how to do arithmetic with Galois Fields (GF(2^4)). In particular, I am focusing on addition and multiplication.

The addition problem we are looking at is:

Compute A(x) + B(x) mod P(x) in GF(2^4).
   Let A(x) = x^2 + 1, B(x) X^3 + x^2 + 1, P(x) = x^4 + x + 1. 

So we begin by adding A and B:

           x^2 + 1 
      x^3 + x^2 + 1
      = x^3

Now here is where I'm confused, the mod P(x). What's throwing me off is that the degree of P(x) is greater than the degree of (A+B). My understanding (please correct me if I'm wrong) of the purpose of the mod P(x) is to reduce the polynomial so that it "fits" into the field GF(2^4). But if the degree of P(x) is larger than the highest degree in (A+B), how do we go about doing this?

The multiplication problem we are looking at is:

Compute A(x) * B(x) mod P(x).
Let A(x) = x^2 + 1, B(x) = x^3 + x^2 + 1, P(x) = x^4 + x + 1

So we multiply the two polynomials just like we were taught back in highschool:

(x^2 + 1) (x^3 + x^2 + 1) = x^5 + x^4 + x^2 + x^3 + x^2 + 1 
 *I'm unsure of what happens to the x^2 + x^2 here, because we are in GF(2), does this = 0?

Assuming that the two x^2's result in 0, the result is:

x^5 + x^4 + x^3 + 1 MOD x^4 + x + 1

If anyone could walk through the modular reduction of polynomials for me that would be much appreciated, I am not confident in my ability to do this just yet...

My attempt:

x^5 + x^4 + x^3 + 1 MOD x^4 + x + 1 = x^3 + x^2