1. Referring to Diagram 6, position handle raw ends on right side of bag front 3" on each side of center. Baste in place. Repeat to add handle to bag back.
2. Sew bag front and back together, leaving upper edge open, to make bag body. Turn right side out.
3. With right sides together, slip bag body into lining, matching side seams (Diagram 7). Sew together upper edges of bag body and lining.
4. Turn bag right side out through lining opening. Machine-stitch opening closed.
5. Insert lining into bag body. Press bag upper edge and topstitch 1/8" from upper edge to complete bag.