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In the video, the instructions on how to sort data by date are demonstrated. To do this, first, ensure that the date column is formatted as a date. Go to format cells, choose the date format under the number category. Next, select the date column, go to the data tab, click on sort, and choose expand selection. Select the date column to sort by date and keep other options as they are. Click OK to sort the data. After sorting, the data will be arranged by date, with the example date changing from the 14th of a month.