Converting an Image to a texture

How do I apply the texture back to the mesh? When I apply the texture back to the mesh the bullet hole (bh) doesn't show up. What am I doing wrong?

Here's my code:

If MouseHit(1) Then
bodtex=LoadTexture("Body.jpg")
bh=LoadImage("bh.bmp")
SetBuffer TextureBuffer(bodtex)
DrawImage bh,MouseX(),MouseY()
SetBuffer BackBuffer()
EntityTexture m,bodtex
EndIf

Thanks