README.md in jsbundling-rails-1.0.2 vs README.md in jsbundling-rails-1.0.3

@@ -22,26 +22,35 @@
 
 ## Installation
 
 You must already have node and yarn installed on your system. You will also need npx version 7.1.0 or later. Then:
 
-1. Add `jsbundling-rails` to your Gemfile with `gem 'jsbundling-rails'`
-2. Run `./bin/bundle install`
-3. Run `./bin/rails javascript:install:[esbuild|rollup|webpack]`
+1. Run `./bin/bundle add jsbundling-rails`
+2. Run `./bin/rails javascript:install:[esbuild|rollup|webpack]`
 
 Or, in Rails 7+, you can preconfigure your new application to use a specific bundler with `rails new myapp -j [esbuild|rollup|webpack]`.
 
 
 ## FAQ
 
 ### Is there a work-around for lack of glob syntax on Windows?
 
 The default build script for esbuild relies on the `app/javascript/*.*` glob pattern to compile multiple entrypoints automatically. This glob pattern is not available by default on Windows, so you need to change the build script in `package.json` to manually list the entrypoints you wish to compile.
 
-## Why does esbuild overwrite my application.css?
+### Why does esbuild overwrite my application.css?
 
 If you [import CSS](https://esbuild.github.io/content-types/#css-from-js) in your application.js while using esbuild, you'll be creating both an `app/assets/builds/application.js` _and_ `app/assets/builds/application.css` file when bundling. The latter can conflict with the `app/assets/builds/application.css` produced by [cssbundling-rails](https://github.com/rails/cssbundling-rails). The solution is to either change the output file for esbuild (and the references for that) or for cssbundling. Both are specified in `package.json`. 
 
+### How can I reference static assets in JavaScript code?
+
+Suppose you have an image `app/javascript/images/example.png` that you need to reference in frontend code built with esbuild.
+
+1. Create the image at `app/javascript/images/example.png`.
+1. In `package.json`, under `"scripts"` and `"build"`, add the option `--loader:.png=file` to the esbuild script, which instructs esbuild to copy png files to the build directory.
+1. When esbuild runs, it will copy the png file to something like `app/assets/builds/example-5SRKKTLZ.png`.
+1. In frontend code, the image is available for import by its original name: `import Example from "../images/example.png"`.
+1. The image itself can now be referenced by its imported name, e.g. in React, `<img src={Example} />`.
+1. The path of the image resolves to `/assets/example-5SRKKTLZ.png`, which is served by the asset pipeline.
 
 ## License
 
 JavaScript Bundling for Rails is released under the [MIT License](https://opensource.org/licenses/MIT).