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In this video tutorial, the presenter teaches viewers how to properly format dates in Excel. The issue arises when dates are stored as text, preventing them from being recognized by Excel's date formatting options. To resolve this, the presenter demonstrates using the "Text to Columns" feature under the Data tab. After selecting "Delimited" and choosing the correct date format (MDY), clicking "Finish" converts the text into a recognizable date format. Finally, the presenter shows how to open the Format Cells dialog (using Control + 1) to customize the date format to display as "MMM-YY".