Hey there, nshnider1.
Welcome to the Online Community. I can help make sure you’re able to change the category from transfer to expense.
When modifying the transaction type, you’ll need to tick the radio button from Transfer to Add to see the Select Category box. From there, click on the drop-down and choose the correct Expense type where you want to post the transction.
To give you more insights about the process, check out this article: Assign, categorize, edit, and add your downloaded banking transactions.
I've attached screenshots of what categorizing transaction will look like following these steps.
Let me know if you have additional questions about working in QBO. I'll be glad to answer them for you. Have a great rest of your day.