I don't know how to insert Greek letters into my comment, but the Liddell and Scott Intermediate Greek Lexicon has "to shew grace to" as the transaltion of charitoo. I have an Analytical Greek Lexicon (no date--late 19th century?) which gives as meanings "to favour, visit with favour, to make an object of favour, to gift."
Yes, χαριτόω is indeed "I bestow grace" (Greek has no infinitive, so first person is used to refer to verbs). So "εχαριτωσεν" is "bestowed grace", or simply "graced".
The noun here is "χάρις", "grace", or in mundane contexts "favor".
"Made us accepted" sounds like a loose rephrasing.