On January 2, 2020 Aaron enters into a contract with Kirti Inc., a well-established fire protection company, to upgrade and install new computers at 65 workstations. As part of the contract Aaron also agrees to connect and network all of the computers. Contract details include the following:

The total contract price is $67,500.

The normal retail price of the computers is $48,750. Aaron would normally charge $12,500 for an installation of this size and $10,750 for networking services.

The computers cost Aaron $500 each.

The contract requires Aaron to deliver the computers by January 25, 2020 and have the installation and networking completed by February 15, 2020.

Kirti agrees to pay $45,000 upon the delivery of the computers and the balance once the installation is complete, the final payment was made February 28.

Aaron uses the contact-based approach for revenue recognition. Required:

a. Determine if there is a contract between Aaron and Kirti Inc.

b. If there is a contract, record Aarons entries related to these transactions for January 2, January 25, February 15 and February 28.