Make sure you set the neck relief before you screw with the bridge, it must be set to the relief you want first.
The "ivory" plastic bridge is just sitting on there with string tension. Measure your action, know exactly the measurement you want to decrease it on each side. Loosen the strings enough you can pull the bridge out, mark the measurements on the bridge under the string slots [if you want to draw the line connecting the 2 is up to you], put a piece of sandpaper on the floor and sand off the bottom of the bridge up to the measurements. Try to keep the bottom flat by not rocking it while sanding. Make sure the bottom is smooth and cleaned off, put the bridge back on, retune, test it to see if you went far enough. Remember that the filament strip for the piezo pickup is laying underneath the bridge in it's slot, don't do anything stupid when removing and replacing the bridge from the top of it. And the bridge is specific bass and treble, you don't want to put it on backwards.
You should have a spare bridge in the case well, I remember there was one included when they were new.
Can I adjust the truss rod for reducing action? Or do I have to adjust the ivory bridge piece only? The reason I ask is because it looks like the neck from the body to the sound hole is not a streight line.
Just tried what you reccommended Rich and it worked great. It's much better to play the guitar now. Took about 2mm off the bottom. The only thing I feel is wrong with the guitar now is the strings that was on the guitar when i got it. I feel the strings are difficult to play compared to other acoustic guitars I have played.