During the current year, merchandise is sold for $86,000 cash and for $93,950 on account. The cost of the goods sold is $76,240. What is the amount of the gross profit?

Gross Profit

The income left over for a company once it has covered the costs involved in manufacturing and selling its products, or in offering its services.

Merchandise Sold

Products or goods that have been sold to customers, typically referring to transactions within the retail or wholesale sector.

Cost of Goods Sold

Directly incurred costs associated with the production of a company’s goods for sale, comprising material and labor expenses.