The Red Dot - S3-E12
Continuity mistake: After Elaine unwraps her cashmere sweater, Kramer wraps the ribbon around his neck in a scarf-like way and then lies back on The Couch. In a long shot of The Apartment (as Elaine exits the bathroom), the ribbon is gone, but when it cuts to Kramer and he asks about The Red Dot (and for the rest of the scene), the ribbon is back.
Answer: Composer Jonathan Wolff used a synthesizer, although in seasons 7-9, a real bass is used in addition. Wolff also recorded himself making hundreds of mouth noises, pops, and slaps to add to the synthesized bass licks so that each episode has a different theme. The only real "back-story" is Jerry Seinfeld was having trouble coming up with a theme song and talked to a friend who happened to know Wolff. They wanted to avoid that cheesy late 80's sit-com theme song and Wolff came up with what we enjoy now. Jonathan Wolff has also talked about this further in interviews, recently Reed Dunela interviewed him, so for a fuller account of his story; check out "The Wolff of 116th street".
Bishop73