Continuum theory is unsatisfactory for describing wave propagation in the transitional ionosphere, since the mean free path is of the same order as the characteristic length (i.e., Knudsen number in this region is of the order of unity). Therefore a transition model in which isotropic electrons behave as a fluid while the ions are governed by the kinetic equation modified by ion-electron collision effects is proposed to study acoustic wave propagation in the upper atmosphere in the altitude region from 500 to 2000 km. The results show that the dissipation of acoustic waves by electrons is through the viscous and thermal conduction effects, and the dissipation of acoustic waves by ions is through Landau damping. Comparisons of the characteristics of acoustic mode propagation and wave propagation and wave dissipation mechanisms in the collision-dominated, transitional from collisional to collisionless, and collisionless media are also discussed.