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From SpongePedia, the First SpongeBob Wiki.
A $500 Bill is a 500 Dollar Paper note that appears in the Episode: Penny Foolish. SpongeBob found it outside the window of the Discount Grocery Mart, and Mr. Krabs thought it was a Penny, but when SpongeBob found it he thought it was a chewed up Gum for his Collection. It is unknown what has happened to it.