Final answer:
The correct reconciliation statement is to reduce the AR trade by any prepayments, as these are liabilities and should not be included in the reconcilable AR balance.
Step-by-step explanation:
The question is about reconciling the Accounts Receivable (AR) subsidiary ledger to the General Ledger (GL). When reconciling these accounts, the correct statement to complete the reconciliation is a) Reduce the AR trade by any prepayments. Prepayments refer to payments received from customers before the associated goods or services have been delivered or rendered. These are considered liabilities because the company owes either the goods, services or the money back to the customer until the transaction is complete. Therefore, in the AR subsidiary ledger, they should not be counted as part of the reconcilable AR balance. The prepayments must be subtracted from the total AR balance in the subsidiary ledger to reconcile it with the GL.