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Jeff demonstrates how to catalog books using Microsoft Excel, highlighting its capabilities as a spreadsheet application that can organize and manipulate data efficiently. The tutorial shows how to input book information such as title, author, pages, ISBN, and Dewey Decimal number, if desired. Sorting data by different criteria is simple and flexible, allowing users to customize how their book list is arranged. Excel excels in managing and correlating data, making it a great tool for organizing book collections.