500 Post CMS Limit?

Quick question, and maybe this is just the way it is worded. Reading the list here ► [LIST] Feature Availability & Limits it says “Max number of items per collection (with CMS hosting): 500 (every additional 500 items can be requested for $10/month)”

So does that mean if I have a collection called “blogone” it can have up to 500 entries and then if I have a collection named “blogtwo” it can have another 500 entries? Or is it worded in a misleading way and what it really means is 500 total items across all collections?