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To format references in hanging indent and alphabetize them, first select all references. On a Mac, right-click and choose "Paragraph." In the dialog box, select "Hanging" under the special drop-down menu and set line spacing to double. Click "OK" to apply the hanging indent. Next, to alphabetize the references, select them again and click the "A to Z" option at the top. Leave the paragraph settings unchanged and click "OK." This will ensure all your references are correctly formatted with hanging indents and listed in alphabetical order.