1. **State the problem:** Tracy spent 10 dollars. She spent 38 dollars less than 3 times what Daniel spent. We want to find how much Daniel spent, represented by $x$. 2. **Write the equation:** Let $x$ be the amount Daniel spent. Tracy's spending is $10$, which equals 3 times Daniel's spending minus 38. So, the equation is: $$10 = 3x - 38$$ 3. **Solve the equation:** Add 38 to both sides: $$10 + 38 = 3x - 38 + 38$$ $$48 = 3x$$ 4. **Divide both sides by 3 to isolate $x$:** $$\frac{48}{\cancel{3}} = \frac{3x}{\cancel{3}}$$ $$16 = x$$ 5. **Answer:** Daniel spent $16$ dollars.