Target has a Cromwell Convertible Sofa with Ottoman Taupe on clearance for $350 + $20 large item handling fee = $370 including "to the door" delivery.
Save an extra 5% with a Target REDcard.
The Cromwell Convertible Sofa with Ottoman in Taupe from Threshold fulfills all the function you need. The sofa bed has clean lines with two back pillows, two side pillows and an ottoman all upholstered in the same taupe fabric. The sofa converts to a bed for sleeping or cuddling during movie night and still retains the back support and side arms.