Should I, a high school English teacher, report a student for saying a slur?

I’m so torn. I don’t want to ruin a kid’s life, but I have other students that might have been triggered. <br><br>Here’s what happened: I play LOUD music at the end of class to get kids to leave. Sometimes I play NSFW songs with editing. Sometimes the editing doesn’t catch everything. This song was new and I hadn’t listened to it before, and the very end there was an “f word” for homophobic people. Not like the “f word” for “fuck”. <br><br>A student who is gay heard it and laughed and said, “Oh no! I might turn straight?” He then said, “Can I say [slur] to describe myself like Lil Uzi Vert does?” He then said the word. <br><br>All the students laughed. I moved class along as usual and didn’t address it, but now I’m worried I should’ve reported it. He wasn’t being malicious. He was just joking. But I also don’t want him to get in trouble or feel like he can’t joke with me. <br><br>The school has been pretty chill with student language as long as it’s not disruptive to class. But I know the principal isn’t fond of slurs. I’m so torn. I just want to forget it happened and move on but I’m worried my other students that are part of the community will feel like I didn’t stand up for them.