I installed the JDK by downloading the dmg from the Oracle website here: http://www.oracle.com/technetwork/java/javase/downloads/jdk7u9-downloads-1859576.html
After inst
Under Project Structure -> Platform Settings -> SDKs
.
By using '+' sign, you should add a valid JDK, that will take care and add the proper libraries, eg. /Library/Java/JavaVirtualMachines/jdk-XYZ.jdk/Contents/Home
For jdk images older, like 1.6 or before, you need to ensure that all the jars from /Library/Java/JavaVirtualMachines/jdkXYZ_VERSION.jdk/Contents/Home/jre/lib
directory too (charsets.jar, jce.jar, JObjC.jar, jsse.jar, management-agent.jar, resources.jar and rt.jar) are part of your setup.
Navigate to Project Structure -> Platform Settings/SDKs.
Hit the '+' sign and add /Library/Java/JavaVirtualMachines/jdk1.7.0_17.jdk/Contents/Home
For me, I had to select Project Structure->Platform Setting->Global Libraries and click on the "+" icon that is at the top of the middle pane of the Project Structure window. This brings up a "New Global Library" drop down menu. From there I was able to locate the libraries I wanted to include.