Sage will not allow you to change an account from asset to liability ever. Is it a 1000 series account or 2000? If it is 1000, you will just have to open a new account.

It's in the 1000's. After setting up the proper account do I just delete the other one? Or should I credit it out? Where would the debit go? I'm kind of new to this!

Set up the new account for the line of credit in the 2000 range. Use a journal entry to move the opening balance for the fiscal year into the proper account. Depending on the number of transactions year to date I would either repost each entry to the proper account or do a lump sum journal entry on the last transaction date in the current account. Sage won't let you delete the account while there are uncleared transactions and I generally don't recommend clearing data so your better option is to relabel the account DNU for Do Not Use and set it to inactive. If you use recurring entries for the line of credit make sure to re-link them to the new account.

phughes I didn't have a chance to respond, but you said it very well!