Calorie Adjustment for exercise

Not sure what you mean about a chest day...

As to exercise calories: it depends. I see from your page that you have 100+ pounds to lose, so you probably have 2 pound per week goal and that would be reasonable. On the other hand, can you realistically eat just 1200 calories a day for the next 12-18 months? Probably not successfully. Eating extra to account for your exercise will help you find success, as you will be less likely to feel deprived, hungry, lethargic. I would be cautious about the amount of calories you claim for exercise as its really easy to overestimate.

I certainly would not eat all the exercise calories back. In fact, I don't even track exercise calories. I base my daily calorie goal and an estimation of what I burn each week. So if I'm trying to lose weight, I'll just use a reasonable estimation of calories and modify it based on results. Many times you can get a starting number by simply multiplying your weight by 10 and eating that many calories (using lbs). That's a fine enough starting point. Consistently eat that many calories every day. If you lose weight, leave the number alone, if you don't, reduce the number slightly and give it a few more weeks. Eventually you'll find your sweet spot for weight loss. I feel MFP is more often then not going to over estimate the calories you burn from activities. Calories burned is such a huge variable I chose just not to deal with it. Many other people do something like eat back 1/2 or 1/3 of calories burned which is another strategy.

As far as cheat days, why have a scheduled cheat day? They in no way reset anything. You are thinking more of a refeed day which is an advanced topic only need for people who want to get extremely lean (bodybuilders or competitors). They are of little benefit for people who just want to lose weight. Cheat days will set you back as much as you let them. If you eat 500 calories below maintenance for 6 days, then eat 1500 calories above maintenance on a cheat day, you wiped out half your weeks work. If you ate 3000 calories above maintenance on the cheat day, you wiped out the entire weeks work. I have cheat/free meals extremely infrequently. I never plan them regularly. I save them for mostly holidays and vacations. Probably less then 1 a month. They are useful for psychological reasons, but aren't needed regularly.

If your calorie goal is based on what MFP gives you, then yes, you should most definitely eat back your exercise calories - but do be careful since the calorie estimates by the app are often inaccurate. Be precise about the time. If the total time you were on the court was an hour but you weren't constantly playing throughout the whole hour, then you didn't play for an hour.

If your calories are based on TDEE, then your exercise is already factored in, and no you do not need to eat back the calories.

If your body won't take more in, then don't worry about it. If you are feeling full and satisfied, you're fine. Just don't deprive yourself or cheat yourself.