Location in QBO is nothing more than a tag you identify transactions with to aid in reporting - nothing else.
QB is designed to be used using the forms in the menu options, the software does the behind the scenes journal/ledger entries, and you should not. Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.
Create the accounts you need, and use QB as designed