This is the correct approach. It allows locations to be specified.
Unfortunately, there is no corresponding option for inventory write-ons (additions). And if you want to use a journal entry, you have to enter accounts for each debit or credit. Yet locations are not accounts. Nor are they first-tier subsidiary ledgers. So the program structure would have to be modified to allow multi-level subsidiary ledger selection.
The real solution is to change the tab to Inventory Adjustments and allow both positive and negative adjustments. This has been in the Ideas category for more than a year: Inventory Write-off tab modifications - #2 by Tut.
Meanwhile, the only way to handle excess inventory (not purchased) is to make the journal entry as you now are, then enter an inventory transfer from Unspecified to the location where you found the extra stock.