Good morning Chevyman,
I'm not an expert by any means, but here's my opinion. I would think you would count the entire 1400 calories, since they actually did go into your body. The 400 or so calories that you are burning by exercising is where the weight loss comes in and any calorie defiency (sp)? you may have. My limit at present is 1200, so I just feel that if I burn say 200 by exercise, then my body has 1000 left to function on. Since by the charts, I need appx. 1700, for my body just to survive, ( yes, I have a long way to go)
I feel that I am -700 for the day. Since 3500 calories equals 1 lb. of fat, I figure I should be able to lose a pound every 5 days and still stay healthy. Like I say, I'm no expert, and I'm sure someone will correct me if I'm wrong. But, that's my two cents worth. As for the cheat day, have it and enjoy to the max. My older brother lost over 80 pounds about 4 years ago, and he has kept the weight off. He allows himself a cheat day every month and has whatever he wants with no problem. It's the long haul, not one day that matters. Like he told me concerning Thanksgiving and Christmas, the holiday is one day, not the whole month, plan to "cheat" on the holiday and right back to "healthy living" the next day. I have seen it work for him, so I am an expert on that.
Also, my friend has a cheat day every Sunday! She exercises faithfully and eats healthy 6 days a week. On Sunday, day off from exercise and eat all you want buffet after church on Sunday. She say this keeps her going all week, because when she really has a craving for something, she just tells herself " you can have it on Sunday". No way are you going to undo 6 good days in one day. I think when I do eventually get to goal that may be what I do. Hope this helps!
Have a great day!