Final answer:
In cash budgeting, the uncollectible percentage of accounts receivable is ignored because the focus is on actual cash flows, not sales on credit. Uncollectible accounts only affect the balance sheet's allowance for doubtful debts, not the cash flows.
Step-by-step explanation:
The percentage of accounts receivable that are uncollectible is typically not considered in cash budgeting because cash budgeting focuses on cash flows, not on sales made on credit. When preparing a cash budget, the primary concern is to estimate the actual cash that will be received and disbursed within a certain period.
Uncollectible accounts receivable are recognized as an expense in financial accounting but are excluded from the cash budget since they do not affect the actual cash flows; the uncollectible amounts are rather estimated and accounted for in the allowance for doubtful debts on the balance sheet.