It was mutually agreed upon that the Allies deal with Germany first and Japan later. Why is this? Was Japan not as credible of a threat?
No, it was just a less pressing problem.
If the US left Europe alone while it dealt with the Japanese, there was a very definite possibility that Germany and the USSR could end up fighting themselves to a draw and come to a peace agreement, and that the US and UK would have to assault the German-held continent on their own, one which had also had more time to fortify itself. At worst, the UK might get knocked out as well, so the US would be launching from across the Atlantic. Basically, there was a very real concern that if they didn't deal with Germany first, while they had all the allies available to do it, they may not be able to deal with Germany later.