XYZ Air Corp is negotiating an agreement to sell 5 older fleet airplanes to Flying Industries for $25,000,000. XYZ Air Corp verbally agreed to payment terms for the sale in which the full amount is due in 60 days upon receipt of the ships. However, prior to the signing of the agreement, Flying Industries closed and filed for bankruptcy. Which is true under ASC 606 regarding the existence of a contract for the sale described?

a. A contract exists as the parties entered into the agreement and met all of the contract criteria prior to filing for bankruptcy.

b. A contract does not exist as the payment terms were verbally agreed to and not written down for the goods to be transferred.

c. A contract exists as it was verbally agreed to during the negotiations.

d. A contract does not exist as it is not probable that XYZ Air Corp will collect the $25,000,000 it is entitled for the sale of the ships.