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I predict you will have to insist to get the police to even take a report on what is (to them) such a small amount. You'll want the police report for your bank if you choose to dispute the transaction. Beyond taking a report, the police are not going to bother (and probably don't have the expertise anyway).
The correct course, at this point, is to tell B&N in no uncertain terms that if they do not refund the money, you'll be issuing a chargeback (use that word) through your bank. If they do not, then do so. Note, however, that they might close your account after that, and refuse to repopen it (and this might well make it impossible for you to sell the device without lying).
The other alternative is to make noise, and see if you can pressure them in to being reasonable.
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