New to Calorie Counting, Need Help

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Question #1: I know you're supposed to eat more than 1200 calories when trying to loose weight, but is that your NET calorie minimum, including the calories you burn through exercise? i.e., if someone eats 1500 cal in a day but burns 500 at the gym, is that good or bad?

Question #2: If you eat over your calorie goal in a day but burn enough cals in exercise to put your net cals under your goal, did you over-eat or do well for the day?