This seems so elementary but I am really struggling with this. So here's what I've done and where I am getting stuck:

1. I purchased a small downloadable software product (basically a software license, called Software A) that cost $50 using my Visa credit card.
2. I attempted to enter the purchase by clicking the Purchases button from the Home screen which opened the purchase invoice screen.
3. I didn't really have an invoice, just a statement so I unchecked the invoice received box and entered the order number as the reference.
4. I then entered the description of the product, and the cost but the program wouldn't let me save the post until the Item field was filled out. All that was available to me was a drop down box with no choices in it.
5. I then enabled the Inventory and Services function to create a service item for this software license, calling it Software A licence.
6. I went back into the Purchases Journal and this time chose Software A from the Item drop down. 
7. The next challenge is what account to choose. Do I choose my Software Expense account? Or do I choose my Visa payable account? And, if I choose my Visa payable account, how do I associate this expense as a Software Expense item?

Any suggestions would be appreciated, thanks!