Fourtrax 300 transfer case

I am trying to diagnose a clunking/popping sound coming from the front transfer case area on my 95 fourtrax fw. I have already gone through the front diff and ruled it out, Im not sure what else it could be. I took the transfer case apart and the only issue I see is the bearings have a little bit of slack in them. Has anyone had any luck replacing these or should I just replace the whole thing? I a little slack enough to worry about or should I just clean it up and put it back on?

Thanks