First, check if you have the skill tanning (Professions tab of your character screen). If you used a crafting coin to learn leatherworking, you should have that skill (plus leatherworking, outfitting and weaving). You also should have gotten a Schematic: Tattered leather, and a Schematic: Burlap Thread.
If you have all these, you can simply take hides (for example, tattered leather hides) to a tanning vat. You should see an option to make "Tattered leather" in the crafting schematics window, and in the Tanning Vat window you should see an opening for "Hides". Usually, if you have some appropriate hides, the crafting station will pre-select them, otherwise you may have to right click them in your inventory. Then just click craft, and you should find some tattered leather in your bag.
Thanks Sarim,
All of that works just fine and I've made probably 8 or so of the 10 slot bags.
I then went an bought some of the leather armor schematics and the tattered leather won't work for the armor as they all require "Leather"
Nothing I have works for this and I don't see any schematic for it or place to buy it.