Here's a picture of how to do it:
Click on the picture to see a larger, clearer version.
As jean-claude says; just split each clip. Split the clip leading into the transition (Clip A)
just before the end of the clip, giving Sub-clip A. Do the same with Clip B just
after where you're going to put the Transition, giving Sub-clip B.
Extract the audio from both Sub-clip A and from Sub-clip B.
Then apply the Transition between Sub-clip A and Sub-clip B.
NOTE: that you'll have to decide on the intended length of your Transition
before you split off those Sub-clips A and B, so that they're long enough to apply the Transition to! In other words, if you want a Transition of 3 seconds, then Sub-clips A and B will both have to be a bit longer than 3 seconds each!
When you've applied the Transition, just manually adjust (Fade) the levels of the audio to how you want them.
Sounds awkward, but once you've done it a couple of times you'll find it extremely simple and easy.
NOTE: to make audio adjustment easier, when you've extracted the audio, drag one of the audio clips down to the bottom audio track, so that you can more easily adjust each of them without them overlaying on top of each other on the same track.