Welcome to the forums. I don't know that much about the transmission on a Recon, but I'm assuming they're similar to other models. You may have a broken shift drum, but I would pull the front cover and inspect the shift linkage first to be sure that it's not just the linkage. The fact that the neutral light is staying on and it won't shift gears makes me think it's a broken shift drum, since the end of the shift drum turns the gear position switch to indicate whether it's in neutral or not. Like I said, it could just be the shift linkage under the front cover, but it's the "pop" that worries me.
Remove the front crankcase cover and inspect the shift linkage and make sure it's turning the shift drum. If the shift linkage is turning the shift drum, the other end of the shift drum is likely broken.
Most 4-wheeler problems are caused by a loose nut connecting the handlebars and the seat!!
You only need two tools in life -- WD-40 and duct tape. If it doesn't move and should, use the WD-40. If it shouldn't move and does, use the duct tape.