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There is no option to convert on import. However, you have two options. The first is to use the bulk convert after import. You can use a search string such as "not format:epub" without the quotes to show all books that are not in the EPUB format. Select them all and click convert.
You're other option is to have it auto convert when sending to the device. Go to Preferences, Plugins, Device Interfaces, PRS-300/505, click customize. Disable what file formats you don't want sent to your reader, then move your preferred format to the top of the list. When you send any book to your 505 that is not in an enabled format it will auto convert to the first in that list.
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