Which of the following statements is true regarding GAAP for receivables?

1.Companies use the allowance method to estimated credit losses on accounts receivable while notes receivable are reportec at gross amounts without consideration of credit losses.

2.Companies generally use one composite rate to estimate uncollectible accounts and notes receivable.

3.Companies are required to use the current expected credit loss (CECL) model that measures expected uncollectible accounts and record bad debt expense on all receivables.

4.Companies can choose between the direct write-off and the allowance methods to account for bad debts.