Item count showing in incorrect category

When i create classifieds and assign them to a category, the count for that category doesn't show properly in the category list.

For example I created categroy A, B, and C. I created a classified add and assigned it to B. When i look at the classifieds list it shows 0 for category B and does not allow you to select that category because it thinks nothing is there. However, the category list shows something for category A even though I didnt' assign anything to it. When i click on category A, it states nothing is found.