Correct Answer: Option D

Explanation

Carriage outwards refers to the seller's cost of delivering goods to the buyer. Carriage outwards is the expense of the seller when the terms of the sale are FOB destination. Under the accrual method of accounting, the cost of carriage outwards should be reported on the income statement as an operating expense in the same period as the sale of the goods.

It is charged with profit and loss account.

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