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In this Excel tutorial, the speaker demonstrates how to create a drop-down list to enhance data entry accuracy in a spreadsheet with columns for seller, customer, product name, month, quantity, and amount. The drop-down list restricts user input to predefined choices, preventing errors associated with free-text entry. The tutorial outlines the process of adding a new column for product names, accessing the Data Validation feature, and selecting the "List" option under the settings. The speaker provides a sample list of product names (laptop, mobile, desktop), separated by commas. Once the list is created, users can easily select items from the drop-down menu for consistent and efficient data entry.