I don't think that this is the decision of the high school principal so I don't think that it is worth arguing about it with him. It is likely a district policy and, if you want it changed, it is something I'd address with the school board or the superintendent to see if the policy can be changed (calmly, if possible wink ).

Our school district recently changed policies regarding this exact issue. My dd11 will be getting high school credit for both her math and Spanish classes starting next year and the grades will count toward her high school GPA. They've decided that, once kids hit Algebra I and foreign language I, they are high school classes and they show up on the transcript as such (grades and all).