jest.config.js

module.exports = {
  // The directory where Jest should output its coverage files
  coverageDirectory: "coverage",

  coveragePathIgnorePatterns: [
    "/node_modules/",
    "/coverage/",
    "/dist/",
    "/docs/"
  ],

  // Make calling deprecated APIs throw helpful error messages
  errorOnDeprecated: false,

  // An array of file extensions your modules use
  moduleFileExtensions: ["js", "json", "jsx", "mdx"],

  // Automatically restore mock state between every test
  restoreMocks: true,

  // A list of paths to directories that Jest should use to search for files in
  roots: ["src", "tests"],

  setupFilesAfterEnv: [
    "@testing-library/jest-dom/extend-expect",
    "<rootDir>/testUtils/setup.jsx"
  ],

  transform: {
    "^.+\\.[t|j]sx?$": "babel-jest",
    "^.+\\.mdx?$": "jest-transformer-mdx"
  }
};