React-Data-Grid MulitSelect Filter - reactjs

Question

Can someone explain what setFilters is doing here I don't understand how it's declared and what it's doing. I'm trying to implement react-data-grid. I can get one column to filter but when I select another it overwrites the previously save filter selection.
If someone has an example of setFilter I would really appreciate it.
import React, { useState } from "react";
import ReactDOM from "react-dom";
import ReactDataGrid from "react-data-grid";
import { Toolbar, Data } from "react-data-grid-addons";
import createRowData from "./createRowData";
import "./styles.css";
const defaultColumnProperties = {
filterable: true,
width: 120
};
const selectors = Data.Selectors;
const columns = [
{
key: "street",
name: "Street"
},
{
key: "zipCode",
name: "ZipCode"
},
{
key: "date",
name: "Date"
},
{
key: "jobTitle",
name: "Job Title"
},
{
key: "catchPhrase",
name: "Catch Phrase"
},
{
key: "jobArea",
name: "Job Area"
},
{
key: "jobType",
name: "Job Type"
}
].map(c => ({ ...c, ...defaultColumnProperties }));
const ROW_COUNT = 50;
const handleFilterChange = filter => filters => {
const newFilters = { ...filters };
if (filter.filterTerm) {
newFilters[filter.column.key] = filter;
} else {
delete newFilters[filter.column.key];
}
return newFilters;
};
function getRows(rows, filters) {
return selectors.getRows({ rows, filters });
}
function Example({ rows }) {
const [filters, setFilters] = useState({});
const filteredRows = getRows(rows, filters);
return (
<ReactDataGrid
columns={columns}
rowGetter={i => filteredRows[i]}
rowsCount={filteredRows.length}
minHeight={500}
toolbar={<Toolbar enableFilter={true} />}
onAddFilter={filter => setFilters(handleFilterChange(filter))}
onClearFilters={() => setFilters({})}
/>
);
}
const rootElement = document.getElementById("root");
ReactDOM.render(<Example rows={createRowData(50)} />, rootElement);