CASH BUDGET< cash receipt from credit customers, irrecoverable debts

Credit sales:

May (actual) $ 40,000
June (actual) $ 30,000
July (estimated) $ 25,000

recent debt collection experience:

– current month’s sales 20%
– Prior month’s sales 60%
– Sales two months prior 10%
– Cash discounts taken 5%
– Irrecoverable debts 5%

Q> why do we not take out the irrecoverable debt of 5%? Isn’t this what cannot be considered to be received from the credit customer?

Also do we not take out the cash discount as this would be a cash discount not a trade receivable discount?

Thank you very much as always!