During the day, my dogs sleep on the sofas of their choice. At night, the big dog sleeps on the sofa near the tv and the little dog sleeps in a crate (he won't hold it if he has to go otherwise). In that crate, there is a foam cushion at the bottom, 2 fleece blankets, and a goose down comforter (twin size) from The Company Store.
They've got a pretty sweet deal.