In Calibre, just right click on a book, and choose "Convert books". I'd start by doing an individual book, as proof of concept. You'll get a pop-up screen. In the upper left corner is the "input" format, leave this as whatever it is. On the upper right corner there's a "output" format, set this to LRF. Click OK, and the pop-up will close, and in the main screen in the lower right corner there'll be a little moving wheel labeled "Jobs: 1". When it stops moving, it's done.
At this point, see if you can send the converted book to the PRS-500.
Assuming it works, you can bulk convert the rest.
(If it's a DRM book, it will tell you this and refuse to convert it. That's its own can of worms. But a non-DRM book should be converted easily.)
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