FictionWise MultiFormat ebooks work on the PRS-505, as do their Secure Adobe PDFs (although they seem to be phasing out Secure PDFs).
Books on Board sells both Secure Adobe PDF and Secure Adobe ePub (both work on the PRS-505).
If you are comfortable stripping DRM (encryption) and you have a Windows PC, then I suggest buying MS Reader (LIT) ebooks and stripping its DRM using "ConvertLIT GUI". Calibre will then format shift the DRM-free LIT to ePub or LRF for your PRS-505. Note that stripping DRM may not be legal in the US, even for personal use.
Since you already have an eReader ebook, the python script ereader2html can strip its DRM and Calibre can then format shift it to ePub or LRF. If you like FictionWise, buying eReader ebooks is slightly cheaper than other formats and the result of format shifting for the PRS-505 should be as good in many cases as with LIT ebooks.
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