Before answering the question I'd like to clear some misconceptions regarding the belief of the Muslims.
First of all, NOWHERE in the Islamic literature it is said that Allah subhanahu wa-ta'ala SITS. Sitting is an act of creation and so far I've gone through Islamic literatures, I've found no instances where it is said that Allah ta'ala SITS (نعوذ بلله من ذالك). To attribute anything towards Allah which Allah ta'ala has not attributed towards Him, in terms of Islamic jurisdiction, is regarded as a fabrication inside Deen. So, from a Muslims point of view, they do not possess any such belief.
Second of all,
as you have said in your question, "Where is Allah Located? [Logical Question]"
If you try to answer to a question, I think it would be easier for you to understand. Can anyone answer me, "Where was Allah before the entire creation?"
I hope my question is understood.
Were there any place to call "where" before the entire creation? Time, Space etc. are relative dimensions. Muslims believe that all of these
time, matter, space and all other dimensions are creations of Allah. So, you cannot really say where is Allah located. Because Allah subhanahu wa ta'ala is exalted and free from dimensions and bindings.
There are several Hadith regarding this issue (example).
The answer to your question would be
If you directly ask what does these hadith mean then all the Muslims will answer you that Allah knows the best. The salaf i.e. the great Imams and the Fuqaha of the golden era used to read these and say we bring Iman in these ayah and hadith. We do not ask why and how.
But if you take a metaphoric meaning as many great later Imams have done, the answer is very simple. Here it is referring to the forgiveness, blessings which descends from the heavens from Allah for each part of the globe.
By taking this meaning you can come out of that fallacy that whether Allah is located in the nearest sky or not.
To remind again... to attribute any dimension for Allah is prohibited in Islamic jurisprudence.