The way that Sherman did it for the free ePub KJV version as described in this thread appears to be ideal to me:
https://www.mobileread.com/forums/showthread.php?t=31709
Not sure if this is particularly unique to the PRS-505 but I like the fact that the books of the Bible are aligned with the numbered buttons on the right side of the reader for easier selection. From there, the chapters are done the same way. The individual verses are then viewed collectively as part of the chapter. There's no further breakdown after chapters.